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Israel to trim taxes, water and energy costs to fight inflation

12 Tháng Giêng 2023
Israel to trim taxes, water and energy costs to fight inflation © Reuters. FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu convenes a weekly cabinet meeting at the Prime Minister's office in Jerusalem, January 8, 2023. REUTERS/Ronen Zvulun/Pool

JERUSALEM (Reuters) -Israel will cancel or cut back recent hikes in property taxes, water and energy costs, Prime Minister Benjamin Netanyahu said on Wednesday, unveiling preliminary measures to ease inflation.

Finance Minister Bezalel Smotrich, speaking alongside Netanyahu at a televised news conference, said the government would maintain fiscal responsibility while pursuing the plan.

"Our economy has entered an inflationary spiral," said Netanyahu, who began his sixth term as premier last month astride a religious-nationalist coalition government. "We must turn the wheel around now. We cannot wait until the budget discussions."

Among the measures he announced was subsidizing the price of gasoline, freezing increases in property tax and lowering expected hikes in the cost of electricity and water.

But neither he nor Smotrich said where the supplementary funds would come from.

Israel's annual inflation reached 5.3% in November, its highest since October 2008, and the Bank of Israel projects the rate will dip to 3% by the end of 2023. Israel has an official annual target of 1% to 3%.

Israel posted a budget surplus of 9.8 billion shekels ($2.8 billion) in 2022, or 0.6% of gross domestic product, its first annual surplus in decades, the Finance Ministry said. This followed deficits of 4.4% of GDP in 2021 and 11.3% in 2020. Its 2022 deficit target was 3.9% of GDP.

The Manufacturers' Association, which represents some 1,500 firms and 400,000 workers, said the government's plan was "a first step in the right direction to lower the cost of living and increase economic growth."

(Reporeting by Ari Rabinovitch and Dan Williams; Editing by Cynthia Osterman)

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29-09-2023 23:37:49 (UTC+7)

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 EUR/USD1.0585↑ Buy
 GBP/USD1.2216↑ Buy
 USD/JPY149.41↑ Sell
 AUD/USD0.6449Neutral
 USD/CAD1.3530↑ Sell
 EUR/JPY158.12↑ Sell
 EUR/CHF0.9673↑ Sell
 Gold1,872.05↑ Sell
 Silver22.558↑ Sell
 Copper3.7343↑ Sell
 Crude Oil WTI91.45Sell
 Brent Oil92.89Buy
 Natural Gas2.946↑ Buy
 US Coffee C145.88↑ Sell
 Euro Stoxx 504,173.35↑ Sell
 S&P 5004,310.14Neutral
 DAX15,386.58↑ Sell
 FTSE 1007,608.08↑ Sell
 Hang Seng17,822.00Buy
 Small Cap 20001,792.55↑ Sell
 IBEX 359,428.00↑ Sell
 BASF42.950↑ Sell
 Bayer45.45↑ Sell
 Allianz225.70Sell
 Adidas166.62↑ Sell
 Lufthansa7.506Neutral
 Siemens AG135.66↑ Sell
 Deutsche Bank AG10.450↑ Sell
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