Do you deserve money?

What you need to know about the plan to curb price increases

After the public pressure, Bennett and Lieberman presented a series of measures in an attempt to stop the wave of price increases, and, according to them, make it easier for families in Israel.

It is not certain that it will really succeed in preventing the aliyah, but it will provide a net addition to middle-class families.

Walla!

Makes order

Between Ashkenazi

09/02/2022

Wednesday, 09 February 2022, 22:15 Updated: 22:59

• Share on Facebook

• Share on WhatsApp

• Share on Twitter

• Share on Email

• Share on general

• Comments

  Comments

In the video: Bennett: "We will reduce the tax for working families" (Photo by GPO)

Prime Minister Naftali Bennett, Finance Minister Avigdor Lieberman and Economy Minister Orna Barbibai presented tonight (Wednesday) at a press conference in Jerusalem the steps the government intends to take to alleviate the cost of living.

Prime Minister Bennett outlined the main steps that will be taken, including reducing taxes for working families, lowering tariffs on a variety of consumer products, lowering the price of electricity and reducing taxes on food.

The government's plan works well with parts of the public, while other parts of the nation will not be affected at all by the steps that will be taken, but the cost of living will reach them as well.

We examined the main steps announced.

And also - how much will the plan cost the country?

More on Walla!

Bennett: "We will reduce the tax for working families, remove tariffs and bear the burden of electricity prices"

To the full article

Bennett, Lieberman and Barbibai, tonight (Photo: Government Press Office, Amos Ben Gershom)

Tax benefit for young and working families

Under the plan, working families who pay taxes will benefit from an additional credit point for each spouse in 2022, for each child aged 12-6.

Meaning: A family where both spouses work and is on the verge of paying taxes will enjoy another point of credit for each parent.

For example, a family with two children aged 12-6 where both parents earn an average wage, will receive a tax benefit of about NIS 10,500 per year, which is about NIS 875 per month.

The value of this benefit amounts to NIS 5,352 per year per child.

The Ministry of Finance explained that in order to implement the measure, an amendment to legislation in the Knesset will be promoted and that the cost of the measure is estimated at NIS 2.1 billion.

Increasing the subsidy for afternoon classes for middle-class families in clusters 5-4

The second step announced by the Prime Minister, Minister of Finance and Minister of Economy is to increase the subsidy for daycare on the part of the state for middle-class families in clusters 5-4.

Those who live in the cities: Ashdod, Lod, Ramla, Kiryat Gat, Acre, Beer Sheva, Ashkelon, Bat Yam, Afula, Nof Hagalil and more, will be entitled to a subsidy for daycare for children aged 8-3 in the amount of NIS 2,500 per school year per child.

For example, a family with two children aged 8-3 in the after-school programs in the relevant social clusters will save about NIS 5,000 a year.

About 60,000 children will benefit from the benefit, according to the Ministry of Finance.

The cost of the move is estimated at NIS 150 million from the state coffers.

Prime Minister Naftali Bennett, Minister of Finance Avigdor Lieberman and Minister of Economy and Industry Orna Barbibai present the new steps to lower the cost of living, February 9, 2022 (Photo: Bini Ashkenazi, Bini Ashkenazi)

Reducing the increase in the electricity tariff

Due to the unusual price increase that has occurred in the world in coal prices, the Ministry of Finance has decided to reduce for one time for 2022 the excise tax on coal.

The move is expected to moderate the increase in the electricity tariff for households, businesses and industry.

This would mean a typical 2.4% increase in the increase for a household.

This, along with the government's commitment to weaning from the use of coal and reducing the use of polluting fuels in the coming years.

The cost of the move is estimated at NIS 600 million.

Lateral reduction of caps on a variety of food products

For beef, sea fish, seafood, canned tuna, sausages, sauces, dried fruits, cakes, cookies and flour, customs will be eliminated at 12-4% per product.

In addition, the Ministry of Economy promises to expand the exempt quotas that will be distributed in the tender minimum price to the consumer for olive oil, eggs and honey.

The cost of the move is estimated at NIS 260 million.

Will the rise in electricity prices moderate? (Photo: Yossi Weiss, IEC)

Elimination of tariffs on a variety of consumer products, industrial products and raw materials for construction

The Ministry of Finance also promised to abolish caps on household products, including furniture, cutlery, textiles, carpets, sanitary napkins, and electric bicycles.

Customs duties will also be abolished on raw materials and machinery for industry, raw materials for the construction industry, medical equipment, and car spare parts.

According to the Ministry of Finance, this is a significant horizontal abolition of tariffs in the amount of NIS 1 billion on a variety of consumer products, industrial products and raw materials for construction.

The Treasury hopes that the abolition of tariffs will lead to lower consumer prices and increased productivity for factories in industry due to lower raw material costs.

In addition, the abolition of customs duties is expected to make it easier for parallel importers and will also allow them to enjoy the duty-free exemption without presenting certificates of origin.

The reduction of tariffs in the construction industry is expected to lead to a decrease in apartment prices, with an emphasis on apartments in peripheral areas where the price of the apartment is almost completely affected by the cost of building the apartment.

The cost of the move is estimated at NIS 1 billion.

Increasing the work grant for low-wage workers

So far, most of the steps have been aimed at the middle class, but this step is aimed at the weaker sections.

About 300,000 workers who are eligible for a work grant - a negative income tax - will receive a one-time increase of 20% for a work grant in 2022. The average increase is NIS 800 per year per worker and can reach up to NIS 1,700 per year for mothers of three children.

In order to implement the measure, amendments to legislation in the Knesset will be promoted.

The cost of the move is estimated at NIS 250 million.

• news

• News in Israel

• Society and welfare

Tags

• Economic plan

• Avigdor Lieberman

• Ministry of Finance

• Cost of living