Thursday, December 30, 2004

Thank you Bibi.....

As of January 1st, the next stage in the tax reform will go into action. The reform, which seeks to reduce taxes for working Israelis, has slowly reduced the amount paid in income tax since it was introduced in 2002.

According to The Jerusalem Post, The Marker, and Globes, the result will be that a person earning the average wage (approximately NIS 7000 p.m. gross) will have an extra NIS 97 per month in their pay packet. Not a lot of money maybe - but it all helps! The system is structured so that the threshold at which a person starts paying tax has been raised significantly over the last 2 years and the top level of tax (inclusive of health payments and National Insurance contributions), whilst still high in comparison with other countries, is certainly moving in a positive direction for wage earners.

Yes, I think that I probably do continue to pay too much tax - but I appreciate that the economy is growing, the dollar exchange rate is healthy and I take home more money than I used to - I'm certainly with Netanyahu on this one.


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