Tax Authority Chief Calls to Abolish NIS 200 Notes, Possibly All Cash

By וואלה כסף

Translated & summarized from Walla by baba

CenterCharged tone

Hebrew · 13 newsrooms covering

Tax Authority Director Shai Aharonovich called for the abolition of NIS 200 notes and potentially all cash transactions to combat the black economy. Speaking at a tax conference in Eilat, Aharonovich presented a bleak economic outlook for 2027-2028, citing a NIS 200 billion defense budget. He believes eliminating cash could yield NIS 20-30 billion in tax revenue, though the Bank of Israel opposes canceling the NIS 200 note. The President of the Tax Consultants Association suggested reducing bureaucracy to boost revenue.

The story in 6 lines · by baba

Tax Authority Director Shai Aharonovich called for canceling NIS 200 notes and possibly all cash.
Aharonovich cited a need for drastic measures against the black economy and a grim economic forecast.
He estimated canceling cash could bring NIS 20-30 billion in tax revenue.
The Bank of Israel opposes canceling the NIS 200 note, according to Aharonovich.
The 2027-2028 budget was described as 'cruel' with a NIS 200 billion defense allocation.
Tax Consultants Association President Yaron Gindi suggested lowering bureaucracy to increase revenue.

Tax Authority Chief Calls to Abolish NIS 200 Notes, Possibly All Cash — Editorial illustration generated by baba News, not a photograph of the event.

The Director of the Tax Authority, Adv. Shai Aharonovich, presented a grim forecast for the coming years at the annual Tax Consultants Association conference in Eilat, emphasizing the need for drastic measures to combat the black economy and eliminate cash.

Aharonovich described the 2027-2028 budget as "cruel," noting the absence of expected exceptional growth and the ongoing fight on "seven fronts," including a NIS 200 billion defense budget for both years. He stated, "We will have to cancel some of the cash. The Bank of Israel opposes canceling the NIS 200 note, we saw what happened with the mayor of Kfar Saba. We will have to cancel all the NIS 200s, the NIS 200s and perhaps cash altogether. We will need tough measures."

He further highlighted the potential economic benefits of such a move, stating, "There is a dispute between us and the Bank of Israel. I tell you that if the use of cash in Israel is canceled tomorrow morning, it could bring in a collection of NIS 20-30 billion." The Bank of Israel, however, opposes this.

In response, the President of the Tax Consultants Association, tax consultant Yaron Gindi, addressed revenue collection and regulation. "How do you get more money? Lower the bureaucracy and there will be more money," Gindi said. "Everywhere in the Israeli economy, in housing, in all government ministries, every regulator puts his press. And if we want growth, how did you say it? You are missing NIS 20 billion, bring just NIS 30 billion from regulation."

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