After Finance Minister Bezalel Smotrich repudiated his ministry's intention to reinstate the tax on sweet drinks, the Finance Ministry published an order Wednesday morning extending the tax exemption ondrinking until the end of 2024. It was also announced that the exemption from taxation of disposable utensils would be extended.
Heated debate in the Finance Committee over lowering tax on disposable items and sweet drinks | Knesset Channel
Last week, Finance Ministry officials issued an order reinstating the tax on sweet drinks starting in January 2024. But after provoking outrage among the ultra-Orthodox parties, Smotrich backtracked and announced the extension of the exemption in return for the support of Shas and Torah Judaism in his initiative to postpone the municipal elections to the end of February. Now comes the "official stamp" on the continuation of the tax exemption.
Bezalel Smotrich - Leveraging pressure on the ultra-Orthodox parties?, Photo: Oren Ben Hakon
According to sources familiar with the matter, the imposition of the tax served as leverage to pressure the ultra-Orthodox parties, which insisted on holding municipal elections in the near future. After Smotrich retracted his intention to impose a tax on sugary drinks, Torah Judaism and Shas, of which Interior Minister Moshe Arbel is a member, expressed support for postponing the local elections to February 27.
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