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Well right after timetable, Israel will start its sovereign prosperity fund this week, when Minister of Finance symptoms the order to establish it on June 1. This follows the announcement by Israel Tax Authority head Eran Yaacov that the levies gathered less than the Normal Assets Revenue Law has exceeded NIS 1 billion.

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Israel’s sovereign prosperity fund is supposed to comprise all the revenues that enter the condition coffers from the extra profit taxes that have been imposed on Israel’s fuel fields considering the fact that 2011 (Sheshinski 1), as well as the revenues from extra revenue taxes imposed on normal source output given that 2016, which include potash, bromine and phosphates (Sheshinski 2).

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The legislation setting up the sovereign prosperity fund was enacted in 2014. The fund is built to regulate the revenues to optimize the extended-term interests of Israel’s citizens for generations to come.

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According to the legislation, the fund can commence working as soon as the NIS 1 billion threshold has been crossed. 12 months soon after that date, which will be June 1, 2023, the fund can start off distributing up to 3.5% of its revenues per year for social, economic and educational aims according to proposals submitted to the govt and topic to acceptance by the fund’s establishments headed by its council.

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The fund has accrued NIS 1.14 billion to day with an added NIS .836 billion in levies gathered from normal sources that have not nevertheless been placed in the fund since they have not still been aspect of the companies’ annual stories. So the sovereign wealth fund would essentially have a complete of NIS 1.950 billion. Most of the income to date has arrive from the Tamar gas industry.

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Minister of Finance Avigdor Liberman stated, “The funds is coming again to the citizens. The income from Israel’s natural sources should be for the profit of the citizens and I am delighted that inside of a calendar year of setting up the governing administration the fund will start to operate and tens of thousands and thousands of shekels will circulation back again to the public.”

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Published by Globes, Israel business information – en.globes.co.il – on May perhaps 30, 2022.

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© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

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