0% VAT bill delayed until after summer recess

new homes
new homes

The bill for first time buyers of new homes will only pass the Knesset in October, if at all.

The 0% VAT bill on new homes for first time homebuyers failed to pass in the current Knesset session. After late night discussions Minister of Finance Yair Lapid and Knesset Finance Committee Chairman Nissan Slomiansky agreed that the legislative process for the bill, considered Yesh Atid's flagship bill, will be halted for now. The Finance Committee will discuss the bill's clauses during the summer recess, which begins tomorrow.

If Lapid insists on pushing through the bill despite all the opposition from across the political spectrum, even then the bill will only pass the Knesset in October when the Knesset is back in session. However, there is also the possibility that Yesh Atid will withdraw the bill which has been harshly criticized both within the Knesset and by economists.

Until 11pm last night Lapid and Housing Minister Uril Ariel were still trying to push the bill through but to no avail.

A Yesh Atid source said, "Even if the bill is approved in the next Knesset session it will be retroactive."

Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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