The Ministry of Finance and Forum of Burial Societies have clashed on plans included in the 2013 Economic Arrangements bill to abolish the arnona (local property tax) exemption on cemeteries. The proposal will be submitted to the cabinet tomorrow for approval.

The Ministry of Finance insists that abolishing the exemption will simply reintroduce the status-quo before 2010 when the burial societies paid arnona on the cemeteries that they owned.

However, the burial societies argue that the relatives of the deceased will be required to pay the arnona. The Forum of Burial Societies said, "We are talking about a tasteless joke by ministry of finance officials. They are trying to make spin and pacify the public as if the tax is imposed on the burial societies."

"No burial society in Israel ever paid ever paid arnona for the cemeteries they are responsible for. In 2003 the exemption was mistakenly cancelled and no local authority collected arnona understanding that there is no moral logic to imposing a tax on citizens for burying their loved ones. In 2010 the injustice was rectified and the exemption reinstated on cemeteries in a bill supported by the government."

Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2013

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