"In the budget arrangements law for the current year, there are no lines that will help the cash flow of the self-employed public, which it craves in view of the sharp increase in interest rates. There is a very serious crisis of confidence between the self-employed sector and businesses," says Attorney Roy Cohen, President Chamber of Independents in Israel.
We note that these days discussions are still taking place in the Ministry of Finance regarding the state budget - the revenue and expenditure side.
"I hope that we will introduce more bills that can make it easier for the self-employed, such as a reduction in business property tax, accelerated depreciation, and backward offset of losses. At the moment, most of the reforms do not concern the self-employed, with the exception of a bill regarding an exempt dealer, which is also half the line," adds Cohen.
As revealed in Israel Hayom, as part of the state budget for 2023, the Ministry of Finance is promoting a bill, according to which exempt businesses with a sales turnover of up to NIS 100,000 per year will not have to continue reporting recognized expenses for tax purposes, and will receive an automatic recognition of 20% of the income the annual
"Any self-employed person who has a component of rent in his expenses exceeds the 20% rate, so this only worsens his situation," says Cohen.
Netanyahu at the beginning of the cabinet meeting this morning, photo: Yonatan Zindel/Flash90
From a survey of attitudes and perceptions among small business owners in Israel, it appears that only 16% of the respondents believe that the government will act in favor of the self-employed and business owners in Israel to a very large extent, 25% believe that it will act in their favor to a partial extent, while more than half of them, 57%, believe that the government will act little or not at all act in their favor.
Dissatisfaction
The survey also shows that 73% of the respondents did not take credit from the state-guaranteed loan fund for small and medium-sized businesses - either they did not actually take it (66% of the respondents) or they did not know about the possibility (7% of the respondents).
The figure even sharpens to the rate of 77% of the respondents when it comes to small businesses with up to five employees, who have not actually taken credit from the state-guaranteed loan fund (69%) or did not know about the possibility of taking from it (8%).
It is important to emphasize that these data, relevant to the state-guaranteed loan fund, are obtained at the same time as the majority of respondents are dissatisfied with the availability of credit in the banking system (57% of the respondents) and in particular with the interest rates charged for the credit (91% of the respondents).
44% of respondents indicate that the Bank of Israel interest rate and credit costs have the most influence on price costs in Israel, along with the fuel components (16%), the business property tax (8%), electricity (6%) and other components (20%).
The sample was compiled by Shlomo Filber and Tsuriel Sharon through LTD Polls Direct for Lahav - the Chamber of Independent and Business Organizations in Israel, on January 15.
Half of the respondents who belong to the self-employed segment and new business owners whose seniority does not exceed five years of activity, clearly indicated their main fear of inflation and the economy entering a recession.
"require actual actions"
Attorney Roi Cohen, president of Lahav, concludes: "This survey practically expresses the mindset that unfortunately exists among the self-employed and business owners in Israel - a severe crisis of confidence in the governments of Israel and the Knesset.
This quickly requires a government program to accelerate and support this sector to change this reality.
There is a big warning sign here for the members of the incoming government."
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