Coalition chairman MK David Bitan has proposed imposing the new tax on owners of three or more homes only on real estate with an aggregate value of over NIS 20 million. A compromise conveyed to the staff of Minister of Finance Moshe Kahlon proposes that only homeowners with homes worth an aggregate value of over NIS 20 million will be taxed. Bitan, who already announced his opposition to the bill in its current form, told "Globes" yesterday that he believes that the proposed compromise will be supported by coalition members. RELATED ARTICLES Shaked: PM has no conflict of interest on multi-home tax Treasury preparing changes to multi-home tax Gafni: Finance C'ttee won't approve 3-home tax Bitan's proposal also includes raising the tax imposed on landlords from 10% to 15%, in order to reduce the impact of the NIS 20 million threshold on government revenues. The Ministry of Finance's proposal, which does not include a lower threshold, is expected to increase annual revenues by NIS 800 million. The Ministry of Finance claims that the tax is not aimed at bolstering state revenues but rather at encouraging real estate investors to sell their apartments and avoid buying new ones. Bitan offers to encourage investors in a different manner: investors who will sell their apartment following the tax will receive a discount on better tax. Published by Globes [online], Israel business news - www.globes-online.com - on September 26, 2016 © Copyright of Globes Publisher Itonut (1983) Ltd. 2016
