A decisive majority of 77 Knesset members approved the first reading of a bill to restore a tax benefit of 10% for residents of Eilat yesterday evening.  This is a great achievement for the city of Eilat and its municipal administration.  The income tax benefit was cancelled about six years ago, and now the Eilat residents can smile.  Half of the road is already paved.  102 MKs were present at the hearing, with 77 voting to restore the tax benefit to the Eilat residents, 12 opposing it, and one abstaining [sic*].  The bill will be submitted for second and third readings during the winter parliamentary session.  The hearing at the Knesset was also attended by the municipal administration and the mayor of Eilat. 

Responses to publication of this news item in Hebrew by Ronit Zilberstein of Red Sea Communications (www.eilatredc.co.il) included ‘Shabi', who said that the bill, if finalised, is indeed a unique accomplishment by the mayor and his staff and should serve as a significant incentive to draw quality workforce to Eilat.  But it must be hoped that the struggle to retain the VAT exemption meets with equally crowning success. 

A reader response from 'Moshe' praised the City highly for managing to 'achieve the impossible'. 

This very consideration was raised in Eilat Today’s article about this bill yesterday:  That not all Eilatis earn enough to benefit from income tax exemptions, whereas all Eilatis - as well as all tourists, who are the city’s major source of revenue - benefit from the VAT exemption.  Thus, we applaud the mayor and his staff’s accomplishment regarding the tax break, but the road is indeed only half paved.   We must hope and believe that they will make an equal effort and have equal success in preserving the VAT exemption that makes Eilat a tourist draw as well as making life more affordable for the residents.