The Israel Parliament today continued debate on the government’s bill to raise 45,000,000 pounds by a tax on real property. The measure, a counterpart of the 10 percent compulsory “loan” on bank balances and cash introduced last year, was submitted to Parliament last night and is expected to be passed tonight.
The proceeds of the measure are intended for developmental purposes. The measure provides that all property owners lend the government 10 percent of the value of their property for a period of 15 years. The loan will bear two and one-half percent interest. However, the property owner may elect to pay a capital levy of half of what the loan would amount to.
A Treasury spokesman today announced a series of measures approved by a special Ministerial Council on Economic Affairs to attract foreign investment and foreign currency. The program provides for:
1. Abolition of the present system under which exporters are permitted to set aside a portion of the foreign currency their products earn for import purposes. The foreign exchange thus saved will be turned over to the Ministry of Commerce which will allot foreign currency for necessary spare parts.
2. Restriction of imports which are not essential for re-export purposes.
3. Payment of premiums in the form of a more favorable exchange rate for visible and invisible exports and for the transfer of capital to Israel.
4. Premiums to encourage tourists by offering a more favorable exchange rate than at present.
5. Offer more favorable exchange rates for foreign for foreign investors who build industrial plants in Israel.
6. Payment of a more favorable exchange rate for family remittances to Israel resident from relatives abroad.
7. payment of a more favorable exchange rate to in immigrants bringing foreign exchange into the country.
8. Foreign citizens will be permitted to buy building sites in Israel and stocks listed on the Tel Aviv exchange for Israel currency.
The Treasury spokesman expressed the hope that the new measures outlined by the Economic Council will bring additional millions of pounds in foreign currency into the Treasury.
JTA has documented Jewish history in real-time for over a century. Keep our journalism strong by joining us in supporting independent, award-winning reporting.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
