House panel backs nanny tax break
Rainbow coalition overrides treasury's objection to losing NIS 6 billion income a year
The Knesset Committee's Women's Status yesterday agreed that families employing nannies should get tax breaks.
The Finance Ministry opposes the bill, which will cost the state NIS 6 billion if it becomes law.
Previous bills that would have give tax credits to working mothers of children under five or single parents holding full-time jobs were estimated at costing NIS 2 billion.
The new nanny bill was unanimously approved with support from both coalition and opposition lawmakers.
The measure, which needs the support of more than 50 MKs to become law, will give an exemption of NIS 890 (five tax credits) for the first child.
Families with two working parents will be exempt NIS 712 (four tax credits) for the second child and three credits (worth NIS 534) for third and later children. A family with two working parents and three children under the age of five, will receive an exemption of NIS 2,136.
Committee chairman Gideon Saar said the bill would boost workforce participation.