MK Menachem Eliezer Moses told the Knesset plenum that the critical housing shortage in Israel continues and part of the solution compels the government to lower taxes on purchasing an apartment. He cited the average cost of an apartment has skyrocketed an additional NIS 229,000 in 2015 and the cost of an average apartment increased 13.5% last year. Among the reasons for the increased costs is the increase in mortgage interest rates and lengthening the duration of the mortgage.

Moses explains that there is constant talk of lowering the cost of housing but little occurs outside the realm of talk. He feels for as long as the government is unwilling to eliminate and reduce some of the tax costs of a home (apartment), which include building materials such as metallic rods, cement, porcelain articles, aluminum and more, nothing is going to change regarding the high price of homes. He feels that it does not matter if an apartment is located in the center of the country or in the periphery. Whatever the case one usually takes a large mortgage and since the banks don’t want to take risks, they increase the interest rates and fees, and the costs of acquiring an apartment continue to increase.

He calls the situation “absurd” since the banks do not play a share in lowering costs and the treasury doesn’t play a part in lowering taxes. Hence, the shortage continues and it worsens with time. He insists that the cost of an apartment due to direct and indirect taxation and fees climbs a staggering 65%.

(YWN – Israel Desk, Jerusalem)