Ministry of Finance director general Haim Shani today announced his resignation over differences of opinion with Minister of Finance Yuval Steinitz. Shani apparently resigned over a dispute about the next director of the Israel Tax Authority as well as Prime Minister Benjamin Netanyahu's plans to cut indirect taxes and revise the state budget in response to growing public protests.
Steinitz reportedly cancelled Moshe Asher's appointment as director of the Israel Tax Authority, in gross breach of Shani's recommendation. The cancellation reportedly makes former Israel Securities Authority chairman Moshe Tery as the leading candidate for the tax post.
Netanyahu has appointed a special committee to examine cutting indirect taxes. He also ordered the Ministry of Finance and the Ministry of National Infrastructures to prevent tonight's gasoline price hike. The Ministry of National Infrastructures is due to raise the price of self-service 95 octane gasoline by NIS 0.25-0.30 per liter.
There have been rumors in past couple of weeks that Netanyahu wanted to appoint Shani to replace outgoing Prime Minister's Office director general Eyal Gabai because Shani and Gabai drew closer over their work on the over-concentration in the economy committee.
Sources inform ''Globes'' that Shani had begun writing a new economic plan that resembles the stabilization plan of the mid-1980s, and that Steinitz rejection of Shani's initiative led to his resignation. Instead, Steinitz asked Eytan Sheshinski to head a committee to examine measures to help the middle class. Sheshinski chaired the committee that recommended raising the government's take on oil and gas revenues, which was enacted.
In his letter of resignation, Shani said, "I wish to inform you of my decision to resign as director general of the Ministry of Finance. Longstanding disagreements on fundamental issues and day-to-day conduct have brought me to this difficult decision. To my deep regret, my wish to contribute to the State of Israel from my business and managerial experience cannot be fulfilled under these conditions. The events of the past few days are worsening the problems I described and reinforce my opinion that I cannot carry out my job under the current circumstances as I see fit."
Shani replaced Yarom Ariav at the Ministry of Finance in November 2009. Before that, he was CEO of NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE).
Ariav told “IDF Radio" (Galei Zahal) in response, "This is a stunning resignation. This will resonate. The director general of the Ministry of Finance needs the full support of the finance minister and the prime minister, and this was apparently lacking."
Published by Globes [online], Israel business news - www.globes-online.com - on July 31, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011