Without the fund, the economy of Israel could in the future run the risk of so-called "Dutch disease". This happens when a significant increase in revenue from one sector (such as natural gas) causes the local currency (the shekel) to strengthen, which in turn would make other sectors of the economy less competitive.
In November 2010 the International Monetary Fund recommended, in its Article IV Consultation, that Israel set up a sovereign wealth fund.[1] The OECD recommended likewise in 2011. The OECD estimates that its size by 2040 would be between 40 and US$175 billion (that is, between 10 and 50 percent of Israel's GDP) depending on the rate of new discoveries.[2]
The law establishing the fund was passed by Knesset in July 2014.[3] The law states that the fund will begin operating a month after the state's tax revenues from natural gas exceeds one billion. Originally expected to happen by 2017, more recent estimates expect this threshold to be passed by 2020.[4][5] The complicated nature of the windfall tax might cause companies to use intricate forms of tax avoidance.[6]
In January 2022, Finance Minister Avigdor Lieberman announced that the fund is expected to begin operating at the start of the fourth quarter of the year, when taxes on profits from natural gas and other resources reach a minimum level.[7] By June 1, 2022 the fund had officially launched[8] as the levies collected breached the 1 billion shekel threshold.[9]
^"The National Legislative Database". main.knesset.gov.il. Retrieved 2023-09-14.
^Barkat, Amiram (15 February 2017). "Sovereign wealth fund won't operate before 2020". Globes.
^"Israel natural gas wealth fund expected to begin around 2020". Reuters. April 4, 2017.
^Arlosoroff, Meirav (30 August 2017). "Why Hasn't Israel's Windfall-profit Tax Blown in Yet?". Haaretz.
^"Israeli sovereign wealth fund to begin later in 2022, FinMin says". Reuters. 2022-01-26. Retrieved 2022-01-26.
^"Israel launches sovereign wealth fund". Globes. 30 May 2022.
^"Israel Launches Sovereign Wealth Fund". The Media Line. 2022-06-02. Retrieved 2023-09-14.
^"Israeli Citizens Fund (Israeli Citizens Fund) - Sovereign Wealth Fund, Israel - SWFI". www.swfinstitute.org. Retrieved 2023-09-14.
December 15, 2023
israeli, citizens, fund, hebrew, קרן, לאזרחי, ישראל, keren, leezraḥei, yisra, sovereign, wealth, fund, israel, established, order, handle, projected, future, windfall, profits, expected, from, discovery, tamar, leviathan, fields, fund, will, managed, bank, isr. The Israeli Citizens Fund Hebrew קרן לאזרחי ישראל Keren LeEzraḥei Yisra el is a sovereign wealth fund SWF in Israel It was established in order to handle projected future windfall profits expected from the discovery of the Tamar and Leviathan gas fields The fund will be managed by the Bank of Israel Israeli Citizens FundTypeSovereign wealth fundFounded2022HeadquartersTel Aviv IsraelKey peopleBezalel Smotrich Chairman AUMUS 1 010 000 000 2023 Websitehttps www gov il enWithout the fund the economy of Israel could in the future run the risk of so called Dutch disease This happens when a significant increase in revenue from one sector such as natural gas causes the local currency the shekel to strengthen which in turn would make other sectors of the economy less competitive In November 2010 the International Monetary Fund recommended in its Article IV Consultation that Israel set up a sovereign wealth fund 1 The OECD recommended likewise in 2011 The OECD estimates that its size by 2040 would be between 40 and US 175 billion that is between 10 and 50 percent of Israel s GDP depending on the rate of new discoveries 2 The law establishing the fund was passed by Knesset in July 2014 3 The law states that the fund will begin operating a month after the state s tax revenues from natural gas exceeds one billion Originally expected to happen by 2017 more recent estimates expect this threshold to be passed by 2020 4 5 The complicated nature of the windfall tax might cause companies to use intricate forms of tax avoidance 6 In January 2022 Finance Minister Avigdor Lieberman announced that the fund is expected to begin operating at the start of the fourth quarter of the year when taxes on profits from natural gas and other resources reach a minimum level 7 By June 1 2022 the fund had officially launched 8 as the levies collected breached the 1 billion shekel threshold 9 As of October 2023 the fund has US 1 billion in assets under management 10 References edit Israel Article IV Consultation Concluding Statement of the Mission International Monetary Fund November 29 2010 Archived from the original on April 10 2015 OECD Economic Surveys Israel 2011 OECD Economic Surveys Israel Paris OECD Publishing 2011 doi 10 1787 eco surveys isr 2011 en ISBN 9789264038028 The National Legislative Database main knesset gov il Retrieved 2023 09 14 Barkat Amiram 15 February 2017 Sovereign wealth fund won t operate before 2020 Globes Israel natural gas wealth fund expected to begin around 2020 Reuters April 4 2017 Arlosoroff Meirav 30 August 2017 Why Hasn t Israel s Windfall profit Tax Blown in Yet Haaretz Israeli sovereign wealth fund to begin later in 2022 FinMin says Reuters 2022 01 26 Retrieved 2022 01 26 Israel launches sovereign wealth fund Globes 30 May 2022 Israel Launches Sovereign Wealth Fund The Media Line 2022 06 02 Retrieved 2023 09 14 Israeli Citizens Fund Israeli Citizens Fund Sovereign Wealth Fund Israel SWFI www swfinstitute org Retrieved 2023 09 14 Retrieved from https en wikipedia org w index php title Israeli Citizens 27 Fund amp oldid 1179349061, wikipedia, wiki, book, books, library,
