Bank of Israel Rejects NIS 200 Withdrawal as Tax Chief Revives Cash Restrictions

Israel Tax Authority director Shai Aharonovich called for withdrawing the NIS 200 banknote at the Israel Chamber of Tax Advisers' annual conference in Eilat on Monday, and raised the possibility of ending cash use altogether. He estimated that eliminating cash could increase annual tax collection by NIS 20–30 billion. The Bank of Israel responded that authority to cancel banknotes rests with the governor and that no professional justification for cancelling a denomination had been presented. It said Governor Amir Yaron had no intention of cancelling any banknote or changing the denominations in circulation.