The Cabinet yesterday approved a 1963-64 draft budget for submission to the Knesset, Israel’s Parliament, While no details will be disclosed until the budget draft is actually introduced into the Knesset, it is understood to total close to 2,800,000,000 pounds ($933,000,000) or about 500,000,000 pounds ($167,000,000) more than the current budget. It is anticipated that the expenditure’s will be covered mainly by income tax revenues.
Although Finance Minister Levi Eshkol had promised there would be no general rise in taxes, several exceptions are believed incorporated into the budget. These include a land improvement tax now under discussion in the Knesset, higher inheritance taxes and higher imposts on travel abroad. The Government may also make use of a measure already approved by the Knesset granting the Treasury and the Knesset Finance Committee authority to impose purchase taxes on services.
It is understood that leaders of the Histadrut, Israel’s labor federation, who received Mr. Eshkol’s promise not to raise taxes in return for their undertaking to support extension of present salary levels for another year, do not object to the imposition of higher purchase taxes on luxury items.
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