Sources inform ''Globes'' that the Ministry of Finance is planning to change the criteria in the plan for zero VAT for new apartments bought by first-time homebuyers to include new immigrants, as well as IDF veterans, even though the ministry said that it would fight to keep the original criteria. Ministry sources told "Globes" that the matter was under discussion, and that no binding decision had been made.
The eligibility criteria for zero VAT that the housing cabinet approved, includes IDF or National Service. Although the cabinet has approved the plan, it requires amending the law, and the cabinet decided to review the criteria within 45 days.
The issue of new immigrants arose, following queries by Knesset Committee for Immigration, Absorption and Diaspora Affairs chairman MK Yoel Razvozov (Yesh Atid), after the zero VAT plan was announced. "Following the announcement of the VAT exemption for first-time homebuyers, I saw fit in my capacity as chairman of the Immigration Committee, to ask Ministry of Finance officials about new immigrants who received exemptions from military or national service. I am glad that the ministry officials understood the need, and I believe that the matter will be examined."
Military service by new immigrants depends on their age at arrival, not when they arrived. Under the National Service Law, many immigrants who arrived before July 1, 2006, and were over the age of 22 and have a fitness profile of less than 64 (i.e. not fit for combat duty), are exempt from service. All immigrants over the age of 30 are exempt from military service, whether they immigrated before or after July 1, 2006.
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2014
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