Israeli coalition, improving in polls, slashes sales tax

April 1, 1981

Israel's right-wing government coalition, buoyed by a new opinion poll indicating a revival in its political fortunes, slashed sales taxes on scores of consumer goods. The tax-cutting program, proposed by Finance Minister Yoram Aridor two months ago, has helped bring Prime Minister Menachem Begin's Likud Party enough support that it could win an extra 13 Knesset (parliament) seats in the June 30 general election. The Labor Party is still predicted to win 45 of the 120 sea ts.