If the proposed state budget is passed as it appears today, it will result in less income for many families. There are also costs that will make a night in an Eilat hotel more expensive along with increases in other areas of life in Israel. Following is a partial picture of what is in store is the proposed budget is passed.

An average family with three children earning 20,000 gross wages will lose 780 NIS a month. This refers to a family spending 15,800 NIS monthly. As a result of a reduction in monthly child allowances to 150 per child, such a family will lose 250 NIS monthly (3,000 NIS annually). A 1% income tax increase will cost 60 NIS monthly (720 NIS annually). A 1% increase in value added tax to 18% will cost an additional 100 NIS a month (1,200 NIS annually).

These families will not be required to pay additional luxury tax, or tax on flat screen TVs over 50 inches, or on a yacht or private airplane.

In addition;

1. If one is employed in the public sector, one’s salary will be cut by about 120 NIS monthly due to the elimination of a planned salary increase.

2. The elimination of the tax free zone status in Eilat will cost visitors an average of 500 NIS to vacation in the southern city.

(YWN – Israel Desk, Jerusalem)