Israelis selling Israeli shares traded only on Nasdaq may pay tax of 35% from 2003, if the Rabinovitch committee recommendations on tax reform are accepted.

Part of the proposed reform will abolish the distinction between gains on Israeli shares traded abroad, and gains on non-Israeli shares traded abroad, writes Yehuda Sharoni of

Ma'ariv

.

However, dual-listed Israeli shares listed for trade in Tel Aviv and on Wall Street will still be considered "Israeli shares". The tax on them will be only 15%.

Yair Rabinovitch himself told

Ma'ariv

that the interpretation of his report is problematic, and that misunderstandings need to be cleared up before enactment into law.

"A company that wants to pay reduced tax can list its shares for trade in Tel Aviv,"

Ma'ariv

was told.