Interviewed on Channel 2's "Meet the Press" program last night, Minister of Finance Moshe Kahlon commented on Israel's housing problem. "We are seeing changes in the real estate market, and prices have moderated considerably," Kahlon said. He criticized his predecessors, saying, "The damage was caused during twelve years of previous governments and ministers. They left me this job to do."
Kahlon conceded that the cost of living was high, and promised not to leave surplus cash from tax collection in the Ministry of Finance's coffers. "We're about to see a tax cut," he said, "We'll have to return money to the weaker sections of the population. It will go back to the public."
Previewing the Ministry of Finance figure on the housing market released today, Kahlon mentioned a 45% drop in home purchases in Rishon LeZion and Rehovot, and said, "There's a great deal of work still to do, but the most important thing is not to be afraid."
"There are huge pressures on us," he said, "Today, 8,000 young couples who never dreamt of buying a home have signed contracts. We have done difficult things here that weren't done in the past, including in taxation. There was no choice. Ministers before me were afraid of strong people, and I know that I am paying a political price. I'm prepared to take this risk in order that young couples will have homes."
Commenting on the tax on third and subsequent homes and the phenomenon of landlords raising rents even before the tax comes into force, Kahlon said, "That is exploiting the situation. There is no need for rents to rise. The law is currently before the High Court of Justice, and I hope a decision will be made within one to two months."
Kahlon also commented on political interference in the new Israeli Public Broadcasting Corporation, saying, "The corporation will go ahead; we will preserve journalistic freedom. It's impossible to take over the media."
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2017
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