"If we act with economic responsibility, and there is strong leadership under a Netanyahu government in the coming years, there will probably be no need for substantial tax hikes in 2013," Minister of Finance Yuval Steinitz told “IDF Radio" (Galei Zahal) reports that today.
Steinitz's remarks contradict the opinion of most economists and tax experts, who say that, after the January elections the new government, will impose new taxes.
Steinitz said, "There is a need to cut the budget by NIS 14 billion, which is a difficult task, but I have been doing this for four years now, and in any event, we're talking about cutting supplements. There is a lot more work to be done, but we've taken steps in the past four years to improve the economy and people's situation."
As for the Bank of Israel's revised 2013 growth forecast of 3.8%, which includes gas production from the Tamar field, Steinitz said, "A lot of this depends on whether Israel will have strong leadership and a strong government. Israel has had a culture of dividing forces for years, and it's drivel. I would prefer for all the parties on the left to unite."
Commenting on Minister of Housing and Construction Ariel Atias statement that Shas would go to war to keep the portfolio, Steinitz said that as far as he and the Likud we concerned, "The war is not over a portfolio, but over accelerating the construction of new apartments and finding solutions for the housing market. Ariel Atias built - our government built a lot. I want to mention that it was the Netanyahu government that reformed the Israel Land Authority, and that Shas opposed this. It was the Netanyahu government that brought the Trajtenberg Committee and its recommendations, and Shas opposed them."
Steinitz added, "We're been hearing lately a lot of voices from across the political spectrum saying, 'Support us, and we'll support Netanyahu.' So I wish to emphasize, anyone who wants a strong government and leadership which can expedite things should support Netanyahu directly and not indirectly."
Asked if he wanted to be the finance minister in the next government, Steinitz said, "First, we'll win the elections, and then will divide the portfolios, and it's not unreasonable that I'll be the next finance minister."
Labor Party chairwoman MK Shelly Yachimovich told "Galei Zahal" in response, "Steinitz did not say even one true word. The Likud is now blaming the rise in home prices on Minister Atias, after they jointly led wrong reforms. Inequality has widened, jobs are shrinking not increasing, job security has not improved, food and home prices have not fallen. There was not one true word from Steinitz's mouth."
Published by Globes [online], Israel business news - www.globes-online.com - on December 26, 2012
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