Friday, July 29, 2011

Bethel Finances: Interior minister freezes municipal tax hike

www.bethelfinance.com

While the plans for solving the housing crisis that Prime Minister Benjamin Netanyahu presented last night will only have an effect in the long-term, sources inform ''Globes'' that Minister of Interior Eli Yishai has used his authority to freeze arnona (local property tax) in an effort to assist the public in the short-term.

Yishai and Ministry of Interior director general Amram Kalaji agreed that the ministry will deny requests from municipalities to raise arnona over the next months. They will then review the issue on the basis of economic developments.

Yishai will ask the Ministry of Finance to fund the measure, instead of local authorities. Yishai will exempt from the arnona freeze municipalities undergoing recovery, and will coordinate arnona rates with them. The Ministry of Interior will also consider differential arnona hikes for different neighborhoods, based on their socioeconomic standing.

Yishai will meet Netanyahu, Minister of Finance Yuval Steinitz and Union of Local Authorities chairman Shlomo Bohbot in a few days to find additional sources of financing to support municipalities, such as raising arnona for commercial and industrial businesses.

"I won't approve requests to raise arnona for residences. The public's cry of pain is real and immediate remedies are needed," Yishai told "Globes". "The public is collapsing under the economic war of attrition and the government should lead the defensive battle. This war is on all fronts, food and consumer prices, real estate, and healthcare services."

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