Israel to consider limiting ownership of precious metals

Prime Minister Benjamin Netanyahu has asked officials to begin discussing measures to limit the circulation of black market currency to curb illegal activity in Israel.

According to Ynetnews.com, a meeting will be held with Finance Minister Bazalel Smothrich, Bank of Israel Governor Prof. Amir Yaron, Prime Minister’s Office Director-General Yossi Shelley and top officials from the Tax Authority and Task Force for Combating Crime in the Arab Community.

Part of the proposal suggests limiting private ownership of large amounts of cash alternatives such as gold, silver, and coins.

Netanyahu has also asked the group to consider phasing out the 200-shekel banknote, the largest denomination bill in circulation.

Generating tax revenue

Economists predict that by fighting black market money, Israel could increase its tax revenues by $24 to $31 billion by 2030. Under the plan, exchanging 200-shekel notes would be permitted within a short time frame, which is expected to prevent criminal organizations from disposing of the money.

As another safeguard for citizens, a “voluntary disclosure” campaign would permit tax evaders to avoid prosecution by declaring previously unreported income.

Ynetnews reported the measures are aimed at having tax evaders, which include criminals, to deposit or exchange cash at banks, which would identify the source of funds.

As a medium-term goal, the proposal would seek to reduce cash use in Israel drastically and instead encourage bank transfers or credit cards, allowing the government to track illicit transactions better.