State Reaps NIS 125m in Natural Gas Profits

Statistic comes from a petition to the High Court of Justice filed by MK Uri Ariel (National Union) over the government's failure to launch a fund to manage the profits, in keeping with the law.

Zvi Zrahiya
Zvi Zrahiya
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Zvi Zrahiya
Zvi Zrahiya

The state collected NIS 125 million last year after the Sheshinski law, which increased taxes on natural gas profits, went into effect.

This statistic comes from a petition to the High Court of Justice filed by MK Uri Ariel (National Union) over the government's failure to launch a fund to manage the profits, in keeping with the law.

The Tamar offshore natural gas field will replace Mari B in 2013.Credit: Albatross

The figure was provided by Finance Ministry Budgets Director Gal Hershkowitz.

This money is part of an advance paid by oil and gas companies. The law, which significantly increased the state's take from oil and gas exploitation profits, states that companies must pay an advance equal to no less than 8% of their ongoing revenue.

The cabinet decided to create a gas-profit fund last week, but Ariel noted that all money collected under the Sheshinski law needs to go into the fund, as opposed to being absorbed into the Finance Ministry's coffers along with other tax revenue, as has been done so far.

The cabinet's decision to deposit only half of all gas profits into the fund also runs contrary to the law, he noted.

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