"Property tax is the biggest problem in the construction industry today. The cheap property tax structure for apartments brings the heads of the authorities to halt urban renewal and increase cities in general," Yehuda Ketab, chairman of the Tel Aviv District and Contractors Association, opened the conversation with Sharett yesterday. Ayelet Shaked and the members of the organization at their 23rd annual conference in the city of Eilat.
"I know this is not a simple political matter, but I think it should be put to an end. It is a groundbreaking event that needs to be done, and it will lead to a solution. Today I am building in places that have received permission from the district committee. About different and weird things. "
Interior Minister Ayelet Shaked responded, saying that "in the Arrangements Law there was such a proposal to lower the property tax for businesses and increase the property tax for residences. Something that needs to be examined, "Shaked said.
Another tool for enforcement
Shaked reiterated the promise that this government will accelerate construction across the country, according to a plan to create at least 70,000 construction starts a year.
"I toured Kiryat Shmona and there is a complex ready for urban renewal, but no entrepreneur comes because it is not profitable. Tiberias is an example of a city that looks nothing, but has tremendous potential. We will take care of it."
Shaked added that "we need a Jewish settlement in the Negev, and also in the Golan and the Galilee. We will spread a government decision on two new settlements in the Golan, and 10-15 new settlements in the Negev."
When asked about the taxation of apartments for investment, Shaked said: "This question should be asked of the Minister of Housing," but later said that "investors who buy a second apartment allow long-term rent."
Shaked praised the planning committee, Hotamal: "It's great, and maybe you do not know, but a lot of heads of authorities really want to join the umbrella agreements."
Minister of Housing Elkin, Photo: Photo Marcello
"I am preparing another surprise in the field in the coming months," the minister said, but declined to reveal what it was.
According to the context, it can be understood that this is another tool for enforcing the accepted way of obtaining building permits, in order to enable the implementation of the government guarantee to accelerate the pace of construction.
Shaked added that "the committees should approve the maximum possible apartments, and not ask how much the contractor earns."
The contractors lamented that the changes proposed by the government in the Capital Investment Law make the construction of long-term rental housing unprofitable.
The minister could not comment on the matter, but said: "We also plan to allow the conversion of some of the offices into residences. There is no situation that all the offices built in the central area will be inhabited. These apartments will be smaller, for young couples. Today there are more offices than necessary."
Shaked added that a "cyber committee" (inter-ministerial communication) had been set up to implement the idea.
The Minister of Construction and Housing also spoke at the conference.
"It helps when the Minister of Construction and Housing, the director general of the ministry and the head of Rami studied at the same educational institution (Har Etzion Yeshiva in Alon Shvut), but it was not done intentionally," Elkin said.
The minister regretted that the reform of the property tax structure was not passed under the Arrangements Law, but said: "I already see that we will reach the marketing of more than 70,000 housing units this year, maybe even 75,000. It will be possible because there will be a budget. Take care of road and education infrastructure, which is why the heads of the authorities did not agree to increase the localities. "
Regarding investment apartments, Elkin said that "the cheap money in the market has warmed up the investor market. We are taking care of the supply side, but we also need to cool this market."
The contractors also complained to the minister about the "target price", which the minister praised: "We offer up to NIS 300,000 discount for couples, but also linkage to the regular index. The meaning can be expressed in another NIS 200,000-100,000."
