A deal between Yesh Atid and Yisrael Beytenu ensured that the bill would be passed.
This morning, the Knesset Finance Committee approved the bill for zero VAT on new homes for first-time buyers meeting the criteria, by a majority of ten to six. The way to approval of the bill was paved by a deal between Yesh Atid, the party of Minister of Finance Yair Lapid, and Yisrael Beytenu, whereby the in exchange for support for the zero VAT bill, Lapid will submit the section in the Economic Arrangements Bill imposing a tax on medical tourism to the Knesset Labor, Welfare and Health Committee, despite his initial opposition to tjis.
The zero VAT bill will now go to the Knesset plenum for final approval, although at present it is not clear when the vote will take place, since the opposition members of the Finance Committee have demanded a re-vote on its each of its sections. The bill will be in force for seven years from the time it is made law. The Minister of Finance will be obliged to report to the Knesset Finance Committee on the implementation of the law and the degree to which it achieves it objectives.
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014
Yair Lapid picture: Yossi Zeliger