Shalom: Tax reform will include less tax on work, reduction of exemptions

"We are looking at all possibilities for tax reform," Finance Minister Silvan Shalom said today. "We will put together the best, most possible reform, which will include lower tax on work and imposition of taxes on instruments that are currently tax exempt." Shalom spoke at the closing ceremonies of the International Bonds Organization conference.

"I was surprised to read in the papers that I had to be convinced to introduce capital gains tax," said Shalom. According to the Minister of Finance the dates for the tax reform and the implementation of the emergency economic plan are not synchronized so the recommendations will be submitted separately to the cabinet.

He stated that the Ministry of Finance will draft its recommended emergency economic plan in almost final form today and it will be submitted for cabinet approval Sunday April 28.

Hebrew daily Ma'ariv reported today that Shalom had withdrawn his opposition to capital gains tax. According to the newspaper, he withdrew longstanding opposition and the tax committee is now drafting guidelines to tax stock market gains. It will apparently be a relatively low 10-12%.