New taxes for all Israelis and more trouble for settlers on the Golan Heights were forecast by two Cabinet Ministers today. Minister-Without-Portfolio Israel Galili, chairman of the government’s settlement committee said “Our villages in the Golan Heights will have to organize themselves for a new situation” following last week’s battles with Syrian forces. Finance Minister Pinhas Sapir said at a press conference that the government will probably have to impose new taxes and take other fiscal measures to combat inflation. including possibly, rationing. He said defense expenditures were increasing rapidly and that 25 percent of the population is presently employed directly or indirectly in defense work. He said, however, that he was against devaluation of Israel’s currency.
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