Minister of Finance Yuval Steinitz today announced that he has appointed a committee to review policies on Israel's oil and natural gas resources, which will submit its recommendations in August. The move comes after a stormy Knesset discussion in February over government royalties from gas and oil discoveries.
The new committee will consider raising the taxes, fees, and royalties on gas and oil discoveries in Israel. The government currently receives 12.5% in royalties on gas and oil sales.
The Ministry of Finance said, "The large gas discoveries in Israel and the possibility of more large discoveries requires a review of the fiscal system (taxes, royalties, and fees) in order to consider whether this system, set in 1952, is suitable for the 21st century.
"The committee will examine all aspects of the fiscal system, compare them with Western countries with similar macroeconomic and democratic characteristics, and will take into account Israel's unique economic and geopolitical conditions. The committee will propose fiscal policies that will apply to future oil and gas discoveries."
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010