Finance Minister Levi Eshkol told the Israel Parliament today that just about every wage-earner in the country will be subject to assessment for the new 40,000,000-pound ($22,220,000) loan imposed by the Government to help finance the cost of settling the new immigrants reaching Israel from Eastern Europe.
The loan assessment will approximate a ten percent increase in the wage-earners’ income tax, The loan is repayable in 20 years and bears four percent interest.
A bachelor earning $85 or more a month is subject to assessment for the loan as in a married couple with income of $li0 or more monthly. A father of two children will be subject to the loan if his income is more than $140 a month. The father of three will be affected if he makes more than $170.
The Knesset resumed debate on the proposed budget for 1959-60 today. Since the estimates were originally presented two months ago, they have been swelled by an additional 185,000,000 pounds ($102,000,000) to make the total 1,522 million pounds ($845.6 million).
All of the additional budget requests except a 20,000,000 pound ($11.1 million) item for drought relief for farmers, is in connection with the East European immigration.
Funds to offset these allocations are to be derived from the compulsory loan, from increased purchase taxes ranging up to 50 percent of the price of the commodities and higher customs. Additionally, additional contributions through the Jewish Agency are expected to bring SO, 000, 000 pounds ($27.7 million) and a further 15,000,000 pounds ($8,533,000) is earmarked from advance sales of Israel bonds.
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