JERUSALEM (Jul. 5)
The Israeli Government has approved plans to increase income tax exemptions on contributions to secondary schools, universities and hospitals. Finance Minister Pinhas Sapir told the Cabinet yesterday that $700 million would be needed for such educational and medical facilities over the next five years. Sapir said he hoped to raise half the sum in voluntary donations overseas, and the balance in Israel. He said be planned to issue a regulation providing a 30 percent tax deduction on donations to any medical or educational institution that perpetuates the memory of the donor or a member of his family who died in the line of duty. No limit would be made on the amount that could be donated. The Cabinet also agreed to increase income tax exemptions on contributions to the construction funds of such institutions. Anyone donating at least $35,000 in one year will receive a 50 percent tax rebate, provided his donation does not exceed one quarter of his taxable income.