Israel’s Cabinet approved today the levy of higher tax and the further imposition of compulsory loans to raise the funds needed for the next budget. The budget for the next fiscal year, expected to total 4,600,000,000 Israeli pounds ($1,533,333,000), is to be presented tomorrow to the Knesset (Israel’s Parliament).
Income taxes are to be raised from 1 percent to 2 and a half percent, beginning with incomes of $200 monthly. The compulsory loans will be extended for two years. Loans for immigrant absorption will be calculated in accordance with the income tax, amounting to 10 percent of the tax. Each year’s loan is to be repayable in 12 yearly payments.
In another action, the Cabinet also raised building restrictions imposed last year, except on public construction. The Cabinet also voted to hold the next Independence Day parade in Haifa, where Israel’s sea and air power will be displayed. Independence Day is expected to be observed this year on April 25.
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