0% VAT is reaching the final round (or so it seems, at present), after countless objections to the bill have been submitted. This is precisely the time to examine how the public perceives the bill, whether the public still believes in it, and whether public opinion has changed in recent months - from the time Minister of Finance Yair Lapid announced the plan, until today. To this end, market research company Meidata has analyzed social media chatter on behalf of “Globes.” The analysis, which was carried out by Meidata Social Network Manager Neta Yacoby-Rejuan, includes the monitoring of social networks and various forums, qualitatively and quantitatively.
According to Meidata data, half a year ago, when the plan was announced, it was met with great enthusiasm and interest, and, most of all, a sense of real change among the public. Today, things have changed, and the great enthusiasm has made way for expressions of frustration with the government and its handling of the matter. “The vast majority of posts reveal a lack of trust in the plan’s ability to effect real change in the housing market, and a sense that the government and the Minister of Finance don’t really know how to, or are not able to, save the situation,” according to the analysis.
“While 26% of posts believe that the plan has never been ‘serious,’ rather just a public relations spin, 48% believe that it is a measure that, should it come to pass, is liable to have negative effects, and will just contribute to the rise in prices, and that the price for Lapid’s ‘education’ will ultimately be paid by the public, in taxes.” However, it seems that not everyone has given up hope in the 0% VAT plan, and 26% of the chatter expresses support in the plan’s ability to bring about an improvement in the conditions of the housing market and sees it as an important and significant plan.
“The plan will raise housing prices”
The various positions of the public can be seen in representative quotes from the web, in favor of, and against the plan. One voice in favor says, “Obviously this plan will raise apartment prices. They are increasing demand for apartments without increasing the number of available apartments. It doesn’t take an economic genius to know what happens when you increase demand on the same supply. What’s more, 80% of young couples buy second-hand homes anyway, so the plan is irrelevant for them. It is only relevant for the children of rich parents, whom the bank agrees to give mortgages to, and who can allow themselves to buy first-hand apartments.” Another social media commenter says, “Yair Lapid is teaching all the economists, and parties of interest, and contractors a lesson. As soon as the law passes, there will be a drop in second-hand apartment prices of at least 20%. This reduction will also cause contractors to reduce prices, not only for the population that qualifies for 0% VAT, but also for people moving upmarket.”
An analysis of social network chatter also allows for an analysis of opinions regarding whom the 0% VAT plan benefits, and whom it harms. According to the analysis, 34% believe that the middle class and young people will be the beneficiaries, 27% believe that the benefit will be only for the wealthy, 25% say that the contractors and tycoons will benefit most, and 14% think the entire public will benefit from the plan.
Zero VAT is Lapid
In an analysis of attitudes towards Yair Lapid on the Internet, it was found that 27% give him credit and believe that the process is a correct one, 43% believe his intentions are good and see in him a real will to deal with the housing crises, but believe that his lack of experience is liable to lead to negative results, and only 30% believe that the act is rooted in populist motives “He thinks about what looks good, while the public good is not at the top of his agenda.”
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2014
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