• Short Summary

    EARLIER THIS WEEK THE ISRAELI GOVERNMENT ADOPTED TOUGH ANTI-INFLATIONARY MEASURES OBLIGING IMPORTERS TO DEPOSIT ABOUT 50 PER CENT OF TAXES DUE ON THEIR IMPORTS.

  • Description

    EARLIER THIS WEEK THE ISRAELI GOVERNMENT ADOPTED TOUGH ANTI-INFLATIONARY MEASURES OBLIGING IMPORTERS TO DEPOSIT ABOUT 50 PER CENT OF TAXES DUE ON THEIR IMPORTS. THIS IS ONE OF A SERIES OF NEW TAXES WHICH HAVE BEEN PUT INTO EFFECTS INT AN EFFORT TO CONTROL THE INFLATIONARY ASPECTS OF ISRAEL'S BOOMING ECONOMY.

    TO OBSERVERS, ISRAEL.'S ECONOMY APPEARS TO BE BURSTING. ISRAELIS REPORTEDLY HAVE BEEN ON A NATIONAL BUYING SPREE IN RECENT MONTHS, BROUGHT ABOUT BY WARTIME PSYCHOLOGY. SALES OF TELEVISION SETS ARE SAID TO HAVE GONE UP BY 150 PRE CENT IN THE PAST YEAR, WHILE CAR SALES HAVE GONE UP BY 50 PER CENT.

    THE BUYING SPREE PLUS OTHER FACTORS, HAVE CONTRIBUTED TO THE BOOM. BUILDING CONTRACTORS ARE SAID TO BE SO SWAMPED WITH ORDERS THAT THEY MUST TURN DOWN OTHER JOBS, HOUSING PRIMES HAVE INCREASED AS WELL.

    THERE IS SAID TO BE FULL EMPLOYMENT, WITH THE LABOUR MARKET EVEN ABSORBING 20,000 ARABS SINCE THE SIX-DAY WAR OF 1976. IN ADDITION, EXPORTS ARE SAID TO BE RISING, WITH ISRAEL'S JAFFA ORANGES FINDING READY EUROPEAN MARKETS.

    BUT IMPORTS ARE REPORTEDLY GROWING FASTER THAN EXPORTS AND THE TRADE BALANCE IS BECOMING LOPSIDED.

    THE TENSION IN THE MIDDLE EAST IS ADDING TO ISRAEL'S DIFFICULTIES. MILITARY SPENDING HAS REPORTEDLY DOUBLED AND REDOUBLED SINCE THE SIX-DAY WAR. IT IS BELIEVED THAT ISRAEL, FOR ITS SIZE, MAY HAVE THE BIGGEST DEFENCE BUDGET IN THE WORLD. THE COMBINATION OF ALL THIS HAS SENT ISRAEL'S FOREIGN CURRENCY RESERVES TUMBLING -- IT IS REPORTED BY HALF -- SINCE THE SIX-DAY WAR.

    IN AN EFFORT TO FIGHT THIS AND REDRESS THE ECONOMIC BALANCE OF THE COUNTRY, A NEW SERIES OF DIRECT AND INDIRECT TAXES ARE BEING LEVIED. COMMERCE AND INDUSTRY MINISTER YOSEF SAPHIR SAID RECENTLY THAT THE BELT-TIGHTENING MEASURES WERE NECESSARY TO CONTROL THE GROWTH OF IMPORTS. "IF THIS KING OF GROWTH CONTINUES," HE TOLD REPORTERS, "ISRAEL WILL COME TO A CATASTROPHE."

  • Tags

  • Data

    Film ID:
    VLVACN30YBK5X2TZ5LX3GQ8E5SD5K
    Media URN:
    VLVACN30YBK5X2TZ5LX3GQ8E5SD5K
    Group:
    Reuters - Source to be Verified
    Archive:
    Reuters
    Issue Date:
    15/01/1970
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Colour
    Duration:
    00:01:30:00
    Time in/Out:
    /
    Canister:
    N/A

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