Cash transactions between businesses will be limited to 5,000 shekels ($1,400) under an Israeli government plan to fight money laundering and tax evasion.
Harel Locker, director-general of the prime minister’s office, said Israel was likely to collect 40 billion-50 billion shekels from the move – nearly 20 percent of the country’s annual budget.
“This is a lot of money and we want this money,” Locker told reporters. “We want to be a leading country in the battle against tax evasion and money laundering.”
Israel is about to start debating the 2015 state budget and it is seeking ways to raise revenue and spend more on health, education and infrastructure.
Locker headed a government panel that issued its interim recommendations on turning Israel into a cashless society on Monday. These include limiting businesses initially to cash or cash-equivalent transactions of 7,500 shekels -down from 20,000 shekels currently – and no more than 5,000 shekels after a year.
Private citizens will be allowed cash deals of 15,000 shekels. The new rules would also limit the use of checks.
Many European countries have similar restrictions.
Read more at Ynet.