Tax Authority Chief Proposes Eliminating NIS 200 Notes, Possibly All Cash

Translated & summarized from Hamal by baba

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Hebrew · 13 newsrooms covering

Israel's Tax Authority Director Shai Aharonovich warned of a harsh economic future and proposed eliminating NIS 200 notes, and possibly all cash, to combat the black market. He estimated this could generate NIS 20-30 billion in revenue, though the Bank of Israel opposes canceling the NIS 200 note. The Tax Consultants Association president suggested reducing bureaucracy to boost revenue.

The story in 5 lines · by baba

Tax Authority Director Shai Aharonovich proposed canceling NIS 200 notes and possibly all cash transactions.
Aharonovich warned of a harsh economic budget for 2027-2028 with no exceptional growth expected.
He estimated canceling cash use could generate NIS 20-30 billion in revenue for Israel.
The Bank of Israel reportedly opposes canceling the NIS 200 note.
The Tax Consultants Association president called for reducing bureaucracy to increase revenue.

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

The Director of the Tax Authority, Shai Aharonovich, presented a grim economic forecast for the coming years at the annual Tax Conference in Eilat, emphasizing the need for drastic measures to combat the black market and eliminate cash.

"I will tell you what the 2027-2028 budget will look like, a cruel budget, we don't see exceptional growth coming," Aharonovich stated during a panel discussion. He noted that Israel is fighting on seven fronts, with a NIS 200 billion defense budget expected for both 2027 and 2028. "But 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 200 notes, the NIS 200 and perhaps cash altogether. We will need tough measures."

Aharonovich 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 we cancel the use of cash in Israel tomorrow morning, it could bring in NIS 20-30 billion in revenue, the Bank of Israel opposes this."

President of the Tax Consultants Association, Yaron Gindi, addressed revenue collection and regulation, suggesting that reducing bureaucracy would increase revenue. "In the Israeli economy, in housing, in all government ministries, every regulator puts their stamp. If we want growth, as you said? You are missing NIS 20 billion, bring in just NIS 30 billion from regulation."

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