Direct from the Finance Committee (Photo: Knesset Channel)
The local government center announced Monday evening that the strike will continue in protest against the Arnona Fund plan until Thursday, but the education system will be excluded and will return to full activity. As part of the strike measures, the work of planning and building committees will be suspended, and no permits will be issued. "The local authorities have no intention of cooperating with the fund to steal public funds, and we will turn to the courts. There will be no transfer of funds to the fund," it said.
The Local Government Center added: "We will not agree to be the collection company of the State of Israel treasury at the expense of the backs of our residents. We will continue to do everything possible to leave municipal taxes for the education, welfare, infrastructure and culture of our residents. We thank the millions of residents who support us in the just struggle and call on the public to continue supporting the authorities so that we can continue to provide you with municipal services."
At the same time, the Finance Committee is holding a vote on the plan. Mayors left the committee's discussion in protest of committee chairman Moshe Gafni's treatment of them. Before leaving, Eilat Mayor Eli Lankri asked to move to a vote on a specific clause, saying: "Just before I travel four hours all the way to Eilat, I want to see with my own eyes who voted against my city."
Moshe Gafni at the Finance Committee (Photo: Flash 90, Jonathan Zindel)
The "Arnona Fund" bill is ostensibly supposed to correct a distortion, according to which residential property taxes are relatively low, which leads mayors to build less for residential purposes and invest more in businesses and industrial zones, where municipal taxes are significantly higher. The coalition argues that the fund will make residential construction more worthwhile, and for this purpose each authority will transfer to the fund 10%-49% of its annual business property tax profit. However, the outline presented for transferring funds to weaker municipalities, as the coalition claimed, has many distortions.
Earlier today, Finance Minister Bezalel Smotrich attacked the local authorities following the strike measures they took. "The strike is unnecessary, harmful and bullying," the minister said at a meeting of his party. Smotrich noted that he "does not intend to give in to pressure, threats and blackmail. We have committed ourselves to an uncompromising fight against the cost of living and this is an important step for this. Israel invested in the Tel Aviv metro, so Tel Aviv needs to give back to the state."
On the other hand, opposition leader Yair Lapid and state camp chairman Benny Gantz criticized the plan. "A budget designed to be an insurance policy for the coalition and Netanyahu, instead of ensuring the strengthening of the Israeli economy," Gantz said. Lapid said of the foundation that it was "a robbery in broad daylight. Distributing the spoils of an irresponsible government that blackmails a weak prime minister."
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- Finance Committee
- Arnona
- Local Government Centre