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Appeal to Smotrich: cancellation of income tax credit points for ages 6-12 is expected to harm thousands of businesses in the economy | Israel today

2023-01-17T11:40:22.365Z


The Union of Chambers of Commerce is calling on the Minister of Finance to extend the temporary order, which is expected to expire on February 15, 2023 • The meaning: the net income of working parents is going to decrease by hundreds of shekels per month - depending on the number of children and the salary of the parent • The President of the Union of Chambers of Commerce: "There will be pressure on employers to raise wages for the compensation for the damage to the net salary"


Today (Tuesday), the Union of Chambers of Commerce calls on Finance Minister Bezalel Smotrich to extend the temporary order, which extended the granting of income tax credit points to parents of children aged 6 to 12 - and is expected to expire on February 15, 2023.

The meaning: the net income of working parents is going to decrease by hundreds of shekels per month - depending on the number of children and the parent's salary.

This is a temporary order, which was initiated by the previous Minister of Finance, Avigdor Lieberman, as part of the plan to lower the cost of living, which was presented together with Bennett on February 20, and whose purpose was to make it easier for a specific population - working parents who pay taxes.

Contrary to estimates, the new government did not include this section in the plan to lower prices that was presented in the middle of last week.

This is a very significant amount - NIS 235 net per month, per child and per parent.

The value of the benefit in a family where both spouses work, reaches up to NIS 5,352 per year per child.

In a family with two children aged 6-12, where both parents earn an average salary, you will receive a tax benefit of approximately NIS 10,500 per year, which is approximately NIS 875 per month.

Parents of a child / photo (illustration): GettyImages,

This year's provision was relevant to more than 530,000 parents who receive a net salary increase of up to thousands of shekels per year.

Until the installation of this temporary order, credit points were given to parents of children up to the age of 5 only, even though the cost of raising children does not end when they reach the age of 5.

It is unlikely that until the submission of the budget, additional measures will be introduced to alleviate the wave of price increases in the economy, and it is not clear whether the budget will include measures that will specifically favor the population of tax-paying working parents.

This is a benefit that cost more than NIS 2 billion per year to the state coffers.

As mentioned, the union claims that beyond the relief for the parents, this is a temporary order that contributes greatly to the encouragement of economic activity in the economy.

Its cancellation will harm thousands of businesses, including small and medium-sized businesses.

"Cutting the monthly income"

"The benefit raised the net salary for employees who are parents, without imposing a cost on the employers," said attorney Uriel Lin, president of the Union of Chambers of Commerce. Addressing Smotrich, Lin claims that "the damage to household wages will also result in an immediate damage to the procurement of goods and services that characterize the needs of families with children, including clothing, footwear, toys and food, while harming the product and employment."

According to Lin, the additional meaning of canceling the curfew is the pressure that will be exerted on the employers for wage increases.

"Many workers, those with families and small children will have to deal not only with the rising cost of living, rising mortgages and electricity prices, but also with a cut of hundreds of shekels in their monthly income. As a result, pressure will be created on employers to raise wages in order to compensate for the damage to net wages," Lin said. .

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Source: israelhayom

All news articles on 2023-01-17

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