Making order:
Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich presented this evening (Wednesday) the plan to fight the cost of living.
These are the main points of the program/
Reducing the increase in electricity prices
The excise tax on coal will be reduced and accordingly the Electricity Authority will be able to reduce the electricity tariff increase by approximately NIS 60 per year per household (a reduction of approximately 15% of the price increase).
Some relief.
Electricity bill (archive), photo: Yehoshua Yosef
In the coming weeks, more steps will be presented to the government to further reduce the tariff.
The total steps are expected to result in a reduction of approximately NIS 240 per household and, together with the assistance tools for the weaker populations, to reduce the total increase in the price of electricity to an average of approximately 70% per household.
For small and medium-sized businesses, the planned measures will result in the complete cancellation of the increase in the electricity rate.
Reducing the increase in water prices The increase in the water
tariff will be reduced at a rate similar to the reduction in the electricity tariff.
As a result of the move, households will save an increase of tens of shekels per year.
The move was made thanks to the reduction of the electricity tariff as well as thanks to the waiver of a dividend from the Mekorot company, so that the amounts will instead be used to reduce the water tariff.
Help to cope with the cost of living for vulnerable populations
The heating grant will be partially brought forward so that those entitled to the grant will receive a payment of about NIS 200 now, instead of in October, in order to help them cope with the cost of living at this time of the year.
The heating grant is a grant in the amount of 608 shekels paid every October by the National Insurance Institute to about 300,000 seniors who are entitled to supplemental income or to seniors who are entitled to a disability allowance.
Freezing the increase in fuel prices The
excise tax on fuel will be reduced by 10 AZ until the end of 2023. The measure will make it possible to cancel the increase in the price of fuel (gasoline) that took effect on January 1, 2023 in the amount of 9 AZ and will help reduce the price later this year.
The freeze on the increase in property tax
rates The increase in residential property tax rates of 1.37%, which went into effect in January 2023, will be frozen.
The step is expected to save about NIS 70 per year on average per household.
Alongside these measures, in January automatic compensation mechanisms went into effect that increase the disposable income of households.
Increase in National Insurance
benefits National Insurance benefits increased in January 2023 according to index updates.
Most allowances were updated at a rate of 5.3%, according to the Consumer Price Index update, and disability allowances were updated at a rate of 9.8%.
Freezing property taxes and lowering fuel: Netanyahu and Semtorich presented a plan to combat the cost of living // Photo: Leam
The reduction of provisions for social insurance premiums and health tax
The collection scales of the National Insurance and the health tax were updated in January 2023 at a rate of 12.5% in accordance with the rate of average wage increase.
All employees whose monthly salary is higher than NIS 6,331 will benefit from a reduction in the rate of provision for social security contributions and health tax of up to NIS 67 per month.
Tax reduction
The income tax rates were updated in January 2023 in accordance with the update in the Consumer Price Index.
In addition, the value of credit points was updated, and the value of the point increased from NIS 223 to NIS 235.
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