Lapid Reacts to Tax Breaks For Corporate Giants

YERUSHALAYIM -

Minister of Finance Yair Lapid said on Monday he’s going to scrap plans for bigger tax  breaks for companies within the framework of the Law for the Encouragement of Capital Investment, Globes reported, citing sources.

News of huge tax breaks for major companies — some paying in effect as little as 3% tax —that made headlines on Sunday prompted the decision.

Lapid wants the tax for companies in the center of the country to continue at the current 15%, and not to be dropped to 12% as had been planned, and the tax paid by companies in the periphery to rise to 10%.

However, the rates will only apply to new companies receiving tax incentives, since it is not possible to adjust the tax rates retroactively.

The new minister was reportedly indignant. “This is infuriating, it is wrong; the public is furious, and so am I,” in response to the Ministry of Finance’s State Revenues Administration report on the tax breaks granted to large corporations.

Speaking at a Yesh Atid party meeting in the Knesset, Lapid said, “It should be remembered that we are not talking about some amendment passed in the dark, but a law passed by the Knesset. Legally, the law is valid for at least ten years. We will change this law. I have sought legal advice, we will open dialogue with these companies, we have a common interest, and we will change the rules of the game consensually.”