During the election campaign for 20th Knesset, Shas party leader Aryeh Deri made a point of promising voters that he will not enter a coalition government that does not accept his zero value added tax (VAT) plan, which calls for eliminating the 18% tax on basic items. It now appears that Deri will remain in the coalition, which is not accepting his zero VAT plan, but offering a respective consolation prize.
As the cabinet prepares the state budget, Deri has agreed to a plan presented by the treasury. While the budget does not include the zero VAT plan, it does contain reductions in electricity, water and public transportation for low income families.
Deri sat with Finance Minister Moshe Kahlon on Tuesday, 19 Menachem Av, as they worked to reach agreement by which Shas will support the budget. In line with the current plan, families earning NIS 7,000 take home salary monthly will be entitled to reductions of tens of shekels on the electric and water bills. A Deri aide explains this amounts to the same thing as removing the value added tax from the utility bills.
The two also agreed that in 3.5 months, these same families will enjoy a 15% reduction in the cost of public transportation. According to a Deri aide, this means a family qualifying for the assistance program will save an average of NIS 110 monthly.
Economy Ministry officials explain the original zero VAT plan would have assisted the more financially established segments of society too while this plan is focused exclusively on the lower income population.
(YWN – Israel Desk, Jerusalem)
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One Response
Great!
So now there’s more bureaucracy. Any family with low income will need to apply for all these things individually and come back 10 times because not all the documentation is the way it should be.
Thanks for the backbone!
What did Likud and Bayit Yehudi give up?