Bank of Israel Clarifies: We Will Not Cancel the 200 Shekel Note
Translated & summarized from Kipa by baba
The Director of the Tax Authority proposed canceling the 200 shekel note and eliminating cash payments to increase tax collection by NIS 20-30 billion annually. Bank of Israel Governor אמיר ירון responded that the bank has no intention of canceling any banknotes, stating no professional basis has been presented for such a move. The Bank of Israel holds the sole authority to cancel notes, and no country has completely abolished cash.
The story in 6 lines · by baba
- Israel's Tax Authority Director proposed canceling the 200 shekel note to boost tax collection.
- The proposal aims to increase annual tax revenue by an estimated NIS 20 to 30 billion.
- Bank of Israel Governor אמיר ירון stated the bank has no intention of canceling any banknotes.
- The Bank of Israel holds exclusive authority over canceling banknotes.
- The Bank cited that no country has completely abolished cash payments.
- The proposal was made at the annual tax consultants' conference in Eilat.
During the annual conference of tax consultants in Eilat, the Director of the Tax Authority, שי אהרונוביץ', reiterated a proposal for drastic measures to curb cash usage. He explained that "we will need to cancel some cash payments, which were recently limited," adding that a complete elimination of cash in Israel could lead to an additional NIS 20 to 30 billion in tax collection annually and prevent other painful measures like heavy tax hikes.
Ahronovitch noted that "Bank of Israel opposes canceling the 200 shekel note," but pointed to police investigations revealing issues with cash payments, including recent cases in local authorities. He stated that "we will need to demand and implement harsh measures in this matter, from canceling the 200 note to canceling all cash in the future."
In a swift response, the Bank of Israel issued a clear statement asserting that the exclusive authority to cancel banknotes rests solely with the Governor of the Bank of Israel, and there are no intentions to use it. The Bank officially stated that "to date, no professional basis has been presented to the Governor justifying the cancellation of any particular note. Cash has not been abolished wholesale in any country in the world, and therefore the Governor of the Bank of Israel does not intend to exercise his authority and act to cancel any note or change the mix of notes in circulation."
This announcement temporarily removes the idea from public discussion.
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