Prime Minister Yitzhak Rabin ended two weeks of speculation over the future of Israel’s new capital gains tax when he announced this week that the 10 percent tax would take effect, as planned, at the start of 1995.
Acknowledging criticism that the controversial new tax could hurt small investors, Rabin said Monday that the government would closely monitor the implementation of the tax and make changes if needed.
“The legislation passed the Knesset, and the law will take effect in January. At the same time, we will do what is done with any new law – watch it and correct what has to be corrected,” Rabin told reporters after meeting with Finance Minister Avraham Shohat for the third time in two days.
Rabin’s announcement had an immediate effect on the Tel Aviv stock market, where share prices plunged.