Treasury wants 1.25% cut in ministry budgets

This morning, the Ministry of Finance requested the cabinet to approve an additional 1.25% (NIS 1.2 billion) flat cut in ministerial budgets, due to "the expansion of coalition agreements and legislative amendments."

Due to the request officially filed to the cabinet, the expenses added to the budget in the past few days include postponing the launch of Public Broadcasting Corporation broadcasts to April 30, building alternative homes for Amona and Ofra residents, vehicle protection in the West Bank, employment of Palestinians in Israel and providing a workforce participation grant.

"I will not renew discussions on the multi-home tax law. Period," said Finance Committee Chairman MK Moshe Gafni. "If my hands are forced by the Knesset chairman, I will not manage the hearing. I have been through enough fiascoes to atone for all of my sins," he said.

MK Micky Rosenthal (Zionist Union) said in response that he and other coalition members will appeal to the High Court of Justice against this law.

The Ministry of Finance today criticized calls to cancel the multi-home tax law. Source in the ministry told "Globes", "This is a cynical move. If anyone has problems with the contents of the law, he should say it up front. Everyone was familiar with this law and knew that legislation is not done in sterile conditions."

The Ministry of Finance said that three changes to the terms of the law were made at the beginning of the discussion, and they were all done at the committee's request:

Tax exemption for owners with two apartments worth up to NIS 1.15 million overall.

A grant of up to NIS 75,000 for owners selling their apartment before the law comes into effect on October 1.

Changing the definition of ownership of three apartments to 249% from the ownership of an apartment.

The multi-home bill was the last issue discussed as part of the approval of the Economic Arrangements Law. Discussions began at midnight and continued uninterrupted until it was approved around 7am on Friday.

Gafni said today, "The whole world knew that this was going to be the last topic. This is a highly significant bill. I talked with the minister at length and he explained why he thinks we should not wait, and I accepted his request. A discussion began and I think it was a real discussion. The discussion resulted in dramatic changes to the law. The only thing missing was for the Knesset legal counsel and Knesset chairman to tell me 'we forbid you from holding this discussion.' Why did the legal counsel wait until Saturday? Where was he on Thursday?'

Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2016

Treasury wants 1.25% cut in ministry budgets

The cut is to cover the cost of new coalition agreements and commitments.