Knesset Approves Tax Reforms According to the Trajtenberg Committee Report
The Knesset plenum this evening (Monday), 5.12.11, unanimously approved, on the second and third reading, the tax reform according to the Trajtenberg Committee report.
According to the law, two income tax credit points will be given to working fathers who pay tax, for every child up to age three, worth NIS 418 per child per month. Prime Minister Benjamin Netanyahu noted that this is a significant financial benefit for many families in Israel. „This is an additional step in implementing the Trajtenberg benefits for reducing the cost of living,” the Prime Minister said. The additional two credit points will take effect on 1.1.12. This is in addition to the benefit, which has already been approved, according to which working mothers who pay tax will receive an additional credit point worth NIS 209 for each child up to age five.
Among the other benefits approved this evening are:
* The tax bracket on those earning over NIS 1 million a year will be raised from 45% to 48%;
* Company tax will rise to 25%;
* The NIS 0.40 per liter increase in the excise tax on gasoline is cancelled;
The benefits will take effect on 1.1.12.
Prime Minister Netanyahu said that, „At the next Cabinet meeting, we will continue with the approval of additional recommendations from Trajtenberg report, which will lower the cost of living.”
