January 02, 2005

Stamp Tax to be abolished by 2008

Raised in Boston, USA, I think I learned about the American Revolution every year of elementary school, and one more year in High School. Featured prominently among its instigators was the hated Stamp Tax:

Also established was the Stamp Act, the first direct levy on the Colonies and passed to generate funds for the British. Newspapers, almanacs, pamphlets, broadsides, legal documents, dice, and playing cards were taxed by this act. Stamps, issued by the British, were attached to the taxed items to indicate that the tax had been paid. 

How surprised I was, on coming to Israel, to find the infamous Stamp Tax alive and well in another corner of the former British Empire: The Jewish State. Thankfully, Binyamin Netanyahu is getting around to repealing it, only 243 years late:

The Knesset Finance Committee today approved a gradual abolition of stamp taxes by 2008. The committee fully approved the Ministry of Finance’s proposal to eliminate stamp taxes in stages in 2005-2008.

In the initial stage, which will begin this Sunday, the tax will be abolished for mortgage and other loan agreements, residential leases, and other documents directly linked to these agreements (e.g. guarantees and liens).

Taxes on these documents will be the first to be eliminated, because they usually place a tax burden on the average citizen. Canceling this tax will cost NIS 300 million in the coming year.

That is, NIS 300 million saved by the citizens.

Posted by David Boxenhorn at January 2, 2005 10:08 PM
Comments & Trackbacks

Now if we can only get rid of the hated television tax!

Posted by: Huatou at January 3, 2005 08:54 AM Permalink

Amen to that!

Actually, what's really stupid is that they could tax cable TV instead. Payments would just be part of people's monthly bill and would hardly be noticed... not that I'm suggesting it! I don't think TV should be supported by any taxes at all.

Posted by: David Boxenhorn at January 3, 2005 09:08 AM Permalink

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