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Israel’s Finance Minister Says There Will Be No Rise in Income Tax

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Finance Minister Levi Eshkol told the Knesset, Israel’s Parliament, today that there will be no rise in income taxes. He made this statement while answering several motions from opposition parties requesting a debate on Israel’s rising price level.

Mr. Eshkol said that the cost of living index had risen by 6-1/2 points during the past year but he pointed out that incomes, profits and salaries also rose. He attributed the price rise mainly to increased demands from consumers who sought to use up higher incomes by more purchases. He said that real income had actually risen.

The Finance Minister urged a lessening of foreign loans and declared that funds for housing for immigrants and others would be obtained from local sources as far as possible. At the same time he submitted a proposal to the Knesset Finance Committee which, if approved, would raise by five percent the tax on travel by Israelis abroad. The tax currently amounts to 120 pounds ($67.20) on ship tickets and 140 pounds ($78.40) on airline tickets plus 45 percent of the value of one-way tickets and 40 percent of the value of round-trip tickets.

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