Following a meeting of minds between treasury officials and the Attorney General’s Office, the maximum purchase price for VAT free apartments for one who has not served in the IDF or national service has been increased from 600,000 NIS to 950,000 NIS.

When Finance Minister Yair Lapid first revealed his plan there was an outcry from the Arab and chareidi communities. While an IDF or national service veteran meeting eligibility requirements can buy a first apartment value added tax free up to a 1.6 million shekel purchase, those who didn’t serve, primarily Arabs and chareidim, were limited to 600,000 shekels. With VAT standing at 18% today, this represents a sizable sum of the purchase price.

Chareidi and Arab lawmakers explained there were almost no apartments available for 600,000 shekels and the new policy was simply discriminatory. Lapid however viewed things differently, explaining he was not discriminating against anyone, simply rewarding those who serve their country.

The final decision was made and the new price ceiling for non veterans has been approved at 950,000 shekels, replacing the unrealistic 600,000 shekel figure.

(YWN – Israel Desk, Jerusalem)