Posted on 07/31/22
| News Source: i24
'We want the public to reduce the use of cash money,' says a member of Israel's Tax Authority
Starting August 1, Israel will no longer allow payments in cash over $1,760 in cash and bank checks, according to The Media Line.
Israel's Tax Authority states that the reform aims to fight organized crime, money laundering and tax evasion.
The $1,760 ceiling will be for transactions between a person and a business, while the ceiling for transfers between private individuals will be $4,400 instead of the current amount, almost $14,700, according to Israel's Globes.
Previously, the use of cash up to $3,200 could be used in business deals. The ceiling for car transfers will remain the same at nearly $14,700.
Tamar Bracha, who is in charge of executing the law on behalf of Israel’s Tax Authority, told The Media Line, “We want the public to reduce the use of cash money."
“The goal is to reduce cash fluidity in the market, mainly because crime organizations tend to rely on cash. By limiting the use of it, criminal activity is much harder to carry out.”
Exemptions to the new law include charitable institutions and trade with Palestinians from the West Bank who are not Israeli citizens. In the case of the latter, large cash deals will be allowed, but a detailed report to Israel's Tax Authority will be required, The Media Line reported.
According to Globes, there will be a grace period of two years before the Tax Authority starts imposing fines on those who engage in cash deals of up to almost $2,500.