The Knesset has approved legislation that will lower public transport fares by 14.5% - the equivalent of withdrawing VAT.
The Knesset has passed the second and third reading of the bill to reduce public transport fares. 92 MKs supported the bill with no opponent and fares will fall by 14.5% next week the equivalent of there being no VAT on the fares.
Minister of Interior Aryeh Deri who sponsored the bill said, "The meaning of this bill is that in the coming few days all Israel's citizens that use public transport will pay less. This is the first example of many to follow in lowering the cost of living. Next week, we will bring a bill before the Knesset to lower the price of water and we will continue to work to lower the cost of living, especially for the disadvantaged."
The amendment to the public transport law passed by the Knesset also allows the government to increase the subsidies that it pays to the public transport operators.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2016
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