Reduced income tax rates took effect in Israel yesterday, the first day of the new fiscal year. A person earning IL 1200 a month, who was recently given a IL 100 a month cost of living allowance, previously paid IL 43.90 of this in income taxes. He will now pay only IL 32. Similarly, a person earning IL 1400 a month, who received a IL 100 cost of living allowance, will pay IL 37.80 instead of IL 55.40 in income taxes.
Tax deductions have also been increased. Men over 60 may deduct IL 480 instead of the previous IL 325, and a third year immigrant will be able to deduct IL 400 instead of only IL 200. A working mother with three children will be able to deduct IL 1560 instead of IL 800, and anyone with a child in the army will be able to deduct IL 600 instead of IL 400.
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