The Ministry of Finance announced today (Thursday) that it is considering introducing the benefit of tax credit points for working parents in the upcoming state budget, and expanding the benefit to also include parents of children up to the age of 18.
The temporary order that extended the granting of income tax credit points to working parents for children aged 6 to 12 is set to expire on February 15.
Until the state budget for 2023 is approved, the net salary for parents of children aged 6-12 is going to decrease by hundreds of shekels per month.
Contrary to estimates, the new government did not include this benefit in the plan to lower prices that was presented in the middle of last week.
Smotrich and Netanyahu during the presentation of the plan to lower the cost of living, photo: Oren Ben Hakon
The net salary is going to decrease by hundreds of shekels.
Payslips (illustration), photo: Ami Shoman
This is a very significant amount - an addition of one point equals NIS 235 net per month, per child and per parent.
A family with two children aged 6-12, where both parents earn an average salary, will receive a tax benefit of approximately NIS 10,500 per year, which is approximately NIS 875 per month.
make it easier for the population
Now, the possibility of introducing the tax benefit into the state budget is currently being considered, and at the same time the intention is apparently to extend it until the end of 2024. Assuming that the budget passes as planned: that is, it will pass the government's approval by the end of January and pass a second and third reading in the Knesset by the end of May - the money Will actually enter only with the June salary, but apparently the benefit will apply retroactively from the beginning of the calendar year.
Assuming that the budget will pass as planned, the benefit will only be entered in the June salary.
Voting on the 2022 state budget, photo: Oren Ben Hakon
A significant benefit.
Finance Minister Smotrich, photo: Oren Ben Hakon
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 former Prime Minister Bennett on February 20 last year, and whose purpose was to facilitate a specific population - working parents of children aged 6-12 who pay taxes.
The benefit cost the state coffers more than two billion shekels, and its extension to children up to the age of 18 is expected to cost even more than one billion.
"Great news for working families"
"We are happy that Finance Minister Bezalel Smotrich adopted the recommendation of the Association of Chambers of Commerce that was forwarded to him this week," said Uriel Lin, President of the Association of Chambers of Commerce.
"As we said, expanding credit points up to the age of 18 will help not only parents, but the entire business sector."
initiated the time order.
Former finance minister Lieberman, photo: Miri Tzachi
"A blessed step" President of the Union of Chambers of Commerce Uriel Lin (archive), photo: Gideon Markowitz
"Increasing the net income of young families, without this becoming a burden on the businesses themselves, is a welcome step that will help small and medium-sized businesses and is huge news for working families. We are happy that the Minister of Finance is acting in a matter-of-fact manner with inquiries coming from the business sector and handling them without delay. From our point of view, this is an innovation in the way the ministry works the treasury".
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