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Will Lieberman not raise taxes?

There are those who will do it for him

Finance Minister Avigdor Lieberman promised not to raise taxes, but a look at the draft budget shows that the finance solution to the housing price problem: the increase in residential property taxes by 15% gradually, and the solution to the traffic jam problem is a "congestion charge", which is actually a tax for many, especially peripheral residents

Tags

• Avigdor Lieberman

• Taxes

• property tax

• Congestion fee

• budget

Sonia Gorodisky

Tuesday, 13 July 2021, 10:51 Updated: 11:42

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How short is the path from the explicit promise "I will not raise taxes" to the introduction of "taxes in disguise" to the draft budget and the Arrangements Law?

Judging by the gap between the statements of Finance Minister Avigdor Lieberman and the wording in the draft budget, it is very short.

This is according to at least two sections.

It will be said immediately: the steps planned by the Treasury are not illogical.

The war on the cost of living and congestion on the roads requires the implementation of solutions, some of which the public will have to bear.

Still, even when a permanent increase in living expenses is not called the explicit "tax," it is sometimes a tax disguised under headings that draw a little less fire and deal with "levies."

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From the draft budget: raising property tax rates for residences, lowering property taxes for businesses (Photo: Walla system !, Walla system!)

Incentive for municipalities to support residential construction

The solution offered by the Treasury, as part of all the tools with which they hope to reduce housing prices, is a change in property tax rates for residences and businesses.

One of the problems that hinders the variety of programs under the heading "urban renewal" (whether TMA 38 in its current form or "Shaked reform" as presented yesterday) is the fact that local authorities fear an increase in residents. cases property taxes inexpensive payment for services provided for it, namely - the deficit.

this compares property taxes visited her pay businesses, causing to many local authorities to encourage their field projects in the industrial, commercial and office space, at the expense of building permits for housing.

Finance suggests raising the property tax for housing by 15% in Gradually, while reducing property taxes for businesses by 10% .Residential property taxes will gradually increase by 1.5% over the next decade,On the other hand, the property tax for businesses will be reduced by 10% as early as 2022.

The proposed solution makes sense, and some would say it is desirable, and for the record: the Bank of Israel also recommended this step about a month ago, in the recommendations report to the new government. Who lives in rented accommodation (that is, for all Israeli citizens).

Draft proposal for a congestion levy on roads (Photo: Walla !, Walla!)

Congestion fee - a tax that will be imposed mainly on the periphery

The second "disguised tax" is also an almost obvious thing - who doesn't want to reduce congestion on the roads? The problem is that a congestion levy, that is, the imposition of a fee of between NIS 3.5-7, on anyone who enters the city centers (with an emphasis on Tel Aviv), is the same as a tax for everything.

Those who have moved from Tel Aviv due to rising real estate prices, but continue to work in its field, will now be required to pay a fixed and daily tax, in the form of the same levy. For example, those who live in the periphery but work in the big city Annually it is close to NIS 1,700.

Here too it should be noted that this is an attempt to find a solution to an acute problem and that the implementation will be carried out in parallel with the upgrade of the public transport system. It has a weak population that has no substitute for entering the big city, especially during rush hours - for its livelihood.

The congested Ayalon lanes.

A congestion levy is the same as a tax on residents of the periphery and the weaker sections (Photo: Reuven Castro)

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