Likud Issues Ultimatum on Kahlon Tax Plan

The Israeli coalition may be veering toward yet another crisis, as the Likud party informed Finance Minister Moshe Kahlon that if he doesn’t revise his new tax program, there won’t be any new tax program.

The Likud threatened that if increased allowances for the disabled are not included in the plan, they will take steps to delay or even block its adoption, Ynet reported on Thursday.

Kahlon’s proposals for tax credits and subsidies, which are directed at helping working class families, has gained the support of the Bank of Israel; and the prime minister’s office said that Netanyahu looks upon it favorably, despite a dustup over Kahlon’s announcement without first consulting him.

However, Likud MK Miki Zohar, the coalition coordinator on the Knesset Finance Committee, warned that Kahlon’s plan as it presently stands is not acceptable.

Zohar and Coalition Chairman David Bitan (Likud) have already begun dilatory maneuvers, demanding a thorough revision of the plan, resulting in delays.

Zohar said he would vote against any budgetary order filed to the Finance Committee if his party’s demands are not met.

Nevertheless, Kahlon says he is confident that the plan will be approved in its entirety, and has begun implementing those parts which do not require Knesset approval, such as abolition of taxes cellular devices, cellphone batteries and SIM cards, which will take effect in May.