Israel plans to impose an additional 15% tax on excess profits of banks for a period of five years, according to a draft law released by the Finance Ministry.
- Under the proposal, the additional tax will be imposed on a bank’s profits that are more than 50% higher than the annual average between 2018-2022
- “A large portion of the banks’ profits derive solely from the high interest rates set by the Bank of Israel. In an unfair way, this interest is passed on to the public only in loans and in the negative balance sheet, but not in deposits. It ...