Taxes May Drive ICL Out Of Israel

Israel Chemicals Ltd. has halted $1 billion in capital projects in Israel following the recommendation by an Israeli government committee to implement a new natural resources tax of 42%. ICL calls the recommendation “an economic and social mistake” that will undermine its competitiveness in bromine, potash, and phosphates. The company adds that the tax would constitute a breach of previous royalty agreements. ICL says the measures will also force it to cut costs and could push it out of Israel. The company is already planning a stock exchange listing in the U.S. The Israeli government says the committee’s goal is to ensure the public receives its fair share of value from Israeli natural resources.