Tax blow to wallets - Israel prepares major changes
Israel's Tax Authority is considering introducing new taxes and canceling exemptions to replenish the budget. Among the measures: inheritance tax, property tax, and canceling the exemption for owners of a single home. Final decisions have not been made; changes are possible only after Knesset approval.
Israel's Tax Authority is studying the possibility of introducing new taxes and canceling some existing exemptions amid growing budget expenses. Final decisions have not yet been made, but the proposals could form the basis for future legislative initiatives. Among the measures under discussion are the return of inheritance tax, reinstatement of property tax, and canceling the tax exemption for owners of a single home. These options are being considered as part of preparing proposals for the Finance Minister and the future government. One reason for discussing new tax measures is the expected economic difficulties next year, as well as the need to increase state budget revenues amid high military spending. The Tax Authority notes that if inheritance tax is introduced, the issue of inheriting real estate will need to be resolved. Supporters of the tax see it as a tool to reduce wealth inequality, while opponents point out that these are assets that have already been taxed. Any changes are possible only after Knesset approval.