A reduction in the financial incentives offered new immigrants was approved yesterday by a ministerial economic committee. Affected are mortgage loans for housing and duty exemptions on imported cars and personal effects. The measures were recommended by a committee headed by Avraham Agmon, director general of the Treasury, and were endorsed by the joint absorption authority composed of representatives of the government and the Jewish Agency.
Beginning July 1, 1972, interest on mortgage loans will be raised from 7.9 to 9 percent though the amount of loans remains unchanged–up to $11,940 in Jerusalem and $9,440 elsewhere. The 20 year amortization period also remains unchanged.
The rules for importing household goods will be changed. Newcomers will be permitted to import goods duty free only from their country of origin or, alternatively, to buy Israel-made goods locally with the right to a tax refund.
Until now, personal items could be imported duty free from any country. A ceiling for tax exemption on imported cars has been based on the price of a Swedish-made Volvo 2000 c.c. car. An immigrant will be allowed a $540 tax rebate on a tax of $619. The exemption will not exceed that amount on larger more expensive cars. The new rules for cars go into effect July 1 and for household goods on April 1.
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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.
