Israel to Raise Taxes on Nat Gas-Find Profits

Source:

"Energy committee recommends nearly doubling existing tax rates."

An Israeli energy committee has recommended that the government nearly double existing tax rates on natural gas finds.

The recommendation could have deep implications following recent discoveries of sizable gas fields off the Mediterranean coast.

Israeli officials say the country's tax rates have historically had been on the low side in global terms, and its energy royalties law is out of date.

The special committee said Monday that Israel's tax revenues from gas and oil finds will increase from under 30% to between 52% and 62%.

The Israeli government still needs to approve the recommendations.

Recent discoveries by Texas-based Noble Energy Inc. and its Israeli partner, Delek Group, could turn Israel into a major gas producer.

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