• Of money

• news

Doesn't stop in black: Lieberman has declared war on cash

Exclusive: The Ministry of Finance is working on legislation that will limit the use of cash in a transaction with a business to NIS 6,000 and NIS 15,000 in a transaction between private parties.

It is estimated that tens of billions of shekels are being deducted from the state coffers due to "black" transactions.

Fear in the Treasury: The Corona has increased the motivation and legitimacy for the situation

Tags

• Avigdor Lieberman

• Cash

• Internal Revenue Service

• Law

• Ministry of Finance

Sonia Gorodisky

Thursday, 22 July 2021, 07:44 Updated: 08:04

• Share on Facebook

• Share on WhatsApp

• Share on general

• Share on general

• Share on Twitter

• Share on Email

0 comments

Finance Minister Avigdor Lieberman has been working to lower the cash use ceiling since January 1, 2022. This is part of an amendment to the law to reduce cash use that came into force almost three years ago and in light of "technological changes in recent years, including the increase in digital money transfer solutions." Amendment of the law that came to Walla!

Of money.

The decision that will be brought to the approval of the Constitution Committee, which limits the use of cash, will be reduced to NIS 6,000 in a transaction with a business and to NIS 15,000 in a transaction between private individuals.

The amendments will not apply to vehicle purchase transactions, for which the limit will remain unchanged - in the amount of NIS 50,000.

Good to know (promoted)

This button can save your life in case of a medical emergency

To the full article

Finance Minister Avigdor Lieberman declares war on the black economy (Photo: Flash 90, Yonatan Zindel)

The goal: tens of billions of unreported shekels

Today, in accordance with the law reducing the use of cash, which came into force two and a half years ago, the ceiling for the use of cash is NIS 11,000 for a business and NIS 50,000 for private individuals.

This is a dramatic reduction designed to combat the "black economy" phenomenon (ie, which is not reported to the tax authorities) which, according to various estimates, causes a loss of tax revenue of tens of billions of shekels every year.

The amendment will be carried out within the authority of the Minister of Finance in the provisions of the law to reduce cash use, which stipulates that the Minister of Finance will be entitled to reduce the amount, with the consent of the Minister of Justice and the Governor of the Bank of Israel.

In addition, since the limit on the amount of employment also applies to wages, the change also requires the approval of the Minister of Labor and Welfare.

Cash payment, the fuel of the black economy.

According to the Taub Center (2018), it rolls in about NIS 134 billion a year (Photo: ShutterStock)

What is a "black economy", according to the draft law?

The explanatory memorandum accompanying the amendment to the law on the use of cash states that "a black economy is defined as a share of its economic activity that does not appear in the data on gross domestic product." The black economy includes activities and income that are carried out outside the legal framework and are not reported to the authorities, in order to avoid fulfilling the obligations imposed on all citizens. "The

use of cash has proven to fuel the phenomenon both in Israel and around the world According to the latest study conducted by the Taub Institute, the volume of the black economy in Israel in 2018 reached 10% of GDP, which is about NIS 134 billion.

It is estimated that in the last year and a half, since the outbreak of the corona crisis, there has been an increase in the extent of the phenomenon.

The Knesset model that left many young people at home was a certain incentive for the phenomenon to grow, but not only that.

• Share on Facebook

• Share on WhatsApp

• Share on general

• Share on general

• Share on Twitter

• Share on Email

0 comments