This evening, the Knesset General Assembly approved the controversial Trapped Profits Law, the main reform in the 2025 budget, by narrow margins in the second and third readings – 59 votes in favor and 58 votes against. The law is expected to bring NIS 9 billion to the state treasury and allow for a balanced budget in 2025.
Prime Minister Benjamin Netanyahu was forced to leave the hospital where he is recovering from surgery to remove the prostate, and come to the Knesset to vote after National Security Minister Itamar Ben Gvir decided to oppose the law in protest against items in the budget.
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Netanyahu wrote in a post attacking Ben Gvir: “There is no greater irresponsible folly than shaking the coalition at this time or risking the downfall of the right-wing government. The Finance Minister and I are navigating the Israeli economy for as long and as long as possible.” “Retained profits” are profits accumulated in companies on which only 23% corporate tax has been paid. Only if the profits are distributed as dividends will an additional tax of up to 30% be paid, in addition to Additional in many cases, such as income tax.
Published by Globes, Israel Business News – en.globes.co.il – on December 31, 2024
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