Expect glitches in implementing the tax refor, warns ex-FM - TheStreet

Expect glitches in implementing the tax reform, former finance minister Avraham Shochat warned today.

"The (tax reform) bill was brought to Knesset today in a hafty, slapdash manner, and too many changes were made in it," Shochat commented on the bill passed into law today.

The tax reform, compiled by a committee under accountant Yair Rabinovitch, was first brought before parliament a month ago. It passed into law today after more than 100 changes.

It is not clear that the banks can carry out their role, Shochat added. "The banks have claimed time and again that they cannot carry our the requirements. Therefore, there may be glitches in implementation."

He also said that the planned revenue from stock market tax, NIS 1 billion a year out of total tax revenue of NIS 195 billion, is too low.

Nonetheless, Shochat said, he recommended that the Labor party vote for the law. Imposing tax on the stock market is more important than ironing out all the law's wrinkles, he said.