(Israel National News) A new Israeli law restricting the use of cash for either wages or payments for transactions has taken effect.
Officially titled the Law to Reduce the Use of Cash, the measure was passed in the Knesset in March, but only went into effect on Tuesday with the start of the new year.
The law was passed, following multiple delays, in response to the findings of a July 2014 report by the Committee to Examine Reducing the Use of Cash in Israel’s Economy, headed by Harel Locker.
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The Locker report, which was adopted by the Finance Ministry, urged the government to ban the use of cash for purchases, payment of wages, or other transactions over a certain limit, in the hope that the restrictions would reduce the amount of unreported transactions which evade tax authorities.