The controversial proposal on imposing an 0.3 percent tax on all bank withdrawals was virtually killed today as its promoter, Finance Minister Yoram Aridor. withdrew the proposal.
Aridor said the tax, originally designed to finance the continued presence of the Israeli army in Lebanon, was “good and convenient, ” but “because of public sensitivity to the tax, ” he was not going to pursue its legislation.
The tax. which should have raised at least 10 billion Shekels a year, was attacked by both the opposition and coalition, with Liberal ministers threatening to vote against it, as well as Tami Knesseters. For this reason the tax was not brought before the Cabinet today.
Theoretically, the Cabinet can still approve the proposal, which was officially made by the Ministerial Economic Committee. However, with Aridor’s announcement, the tax proposal was virtually dead.
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