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Monday, 28 July 2008 21:49 |
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A bill was drawn up regarding giving back a tax benefit but also demanding a heavy price for it. Voting on its first reading is supposed to be today. |
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If there were no last minute changes, the Knesset was expected to vote this afternoon (28.7.08) on restoring a tax break to residents of Eilat. This is the first reading of the bill.
It was recently published that the Ministry of Treasury intends to approve restoration of the 10% tax benefit to residents of the city and cancel the VAT benefit for the city in compensation. The mayor of Eilat was expected to be visiting at the Knesset today at the time of the vote. The city's administration is making efforts to remove cancellation of the VAT exemption from the agenda.
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For this purpose the mayor was also at the Knesset on the day of the farewell-and-succeed reception for Eilat’s Olympic contenders, as well as numerous other occasions. Cancellation of the VAT benefit would have a detrimental effect on tourism, as one of Eilat’s ‘claims to fame’ is its designation as a Free Trade Zone. It would also be detrimental for the residents of the city, who already pay more due to the expenses caused by geographical distance. And while the 10% tax benefit would benefit those who earn enough income to be taxable, those who earn less than that - i.e. the poorest of the population - would gain no benefit at all, while having to pay more for everything because of the VAT that would be in effect. Thus this issue is of vital importance at both the local and national levels. |
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