Knesset Finance Committee Chairman MK (Bayit Yehudi) Nissim Slomiansky announced on Wednesday morning 10 Menachem Av 5773 that he and his colleagues succeeded in modifying the 2013-2014 state budget, removing a portion of the harshest planned taxes. Slomiansky explains that he worked with Finance Minister Yair Lapid and members of the treasury until agreement was reached. Opposition MK Shaul Mofaz told Israel Radio it is nothing but a smoke screen, explaining “These are measures that were added in expressly for the purpose of removing them at the last moment to permit the government to look good.”

According to the modified plan, monthly wage earners under 14,000 NIS will only have to address a 1% tax hike instead of 1.5%. For those earning between 14,000-22,000 NIS, there will still be a 1.5% increase. Over 22,000 NIS, the increase will be 2%. The planned tax for housewives has been cancelled as well as the tax for homeowners wishing to buy a new apartment. These are some of the modifications agreed upon.

In order to compensate and remain in the projected government deficit framework of 4.5% in 2013 and 3% for 2014, all government ministries will have a cut in their budget, ranging from 500 million NIS to 1 billion NIS.

Finance Ministry officials were full of praise for finding the means to ease the burden on citizens.

(YWN – Israel Desk, Jerusalem)