The decisive meeting on the 0% VAT law was halted today at the peak of a turbulent debate in the Knesset Finance Committee, following loud interjections by opposition members, mainly from the Haredi (ultra-Orthodox) parties. The discussion will resume in September.
Finance Committee chairman Nissan Slomiansky asserts that in exchange for stopping the discussion and postponing it until September, the Haredim agreed to forego some of the objections they had submitted.
"The Haredim won," said MK Moshe Gafni (United Torah Judaism). "The Finance Committee gave up, and the discussion about 0% VAT was closed, following a loud debate by opposition representatives. We proved that the opposition is running the Finance Committee and the Ministry of Finance. Our responsibility is to prevent and postpone passage of this bad law, which will harm all sections of the public and throw away NIS 3 billion. By the time the scheduled time for discussion comes around in September, the prime minister will tell the Minister of Finance that he needs the NIS 3 billon for other things, and the law will not be brought up for discussion."
A source close to the Haredim told "Globes," "The discussion was stopped. Nissan Slomiansky realized that it got away from him."
Since the Knesset goes on vacation until September, the Finance Committee will resume its discussions only then. In any case, it appears that the chances that the bill will pass are poor, given the Haredim's opposition and the objections they filed.
The Yesh Atid party is determined to push the bill through, saying, "The 0% VAT bill will pass during the summer, as we promised. Discussion of the bill will continue when the Knesset goes back to work in September, and the will pass in the coming Knesset session, as we said. We won't allow political blackmail at the expense of tens of thousands of young couples who work, serve in the IDF, and pay taxes."
Published by Globes [online], Israel business news - www.globes-online.com - on August 13, 2014
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