Tax Authority Director: "We will have to cancel the 200-shekel bill, and perhaps all cash"

Israel Tax Authority Director Shai Aharonovich stated at a conference that it may be necessary to cancel the 200-shekel bill, and possibly all cash in Israel, against the backdrop of the corruption scandal in Kfar Saba. He estimated that eliminating cash could bring in an additional 20–30 billion shekels per year in tax collection, and hinted at tightening the tax on retained earnings.

Israel Tax Authority Director Shai Aharonovich said at a conference of the Tax Advisors Bureau that it may be necessary to cancel the 200-shekel bill, and possibly all cash in Israel. The remarks were made against the backdrop of the corruption scandal in the Kfar Saba municipality, where bribes were paid in cash. Aharonovich estimated that eliminating cash could bring in an additional 20–30 billion shekels per year in tax collection. He also hinted at an intention to tighten the tax on retained earnings, so that companies would be required to distribute 8% of their profits as dividends instead of 6%. However, he clarified that a complete cancellation of the tax is unlikely. The article notes the Bank of Israel's opposition to canceling the 200-shekel bill but does not elaborate on its position.

Tax Authority Director: "We will have to cancel the 200-shekel bill, and perhaps all cash"