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Higher Taxes on Automobiles, Refrigerators Become Effective in Israel

Higher purchase taxes on automobiles and refrigerators became effective today to provide part of the 118,000,000 pounds ($66,000,000) supplementary budget for Israel for the year ending March 31, 1962.

Finance Minister Levi Eshkol, who asked Israel’s Parliament last night for approval of the supplementary budget, said the additional funds were needed to provide housing for immigrants who were arriving in greater numbers than had been anticipated when original budget estimates were made. Other increased government expenditures were required to meet civil service pay increases, drought relief and repair of substandard school buildings, Mr. Eshkol explained.

The new taxes raise by one pound (56 cents) per kilogram the levy on the weight of passenger cars, and from 80 pounds ($44.80) to 100 pounds ($56) the levy on refrigerators. However, as an offset, customs duties on electronic parts, which ranged from 60 to 100 percent of the prices of the parts, were cut today to 40 percent.

The change in the electronics parts duties were in line with recommendations of the Stanford Research Institute mission which is now in Israel preparing a report on the development of Israel’s electronics industry.

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