Last update - 00:00 10/02/2008
Northern border towns to strike after gov't nixes tax breaks
By Jack Khoury, Haaretz Correspondent
Townships and local councils near the northern border - also known as "front line communities" - announced Sunday that they intend to strike in protest of the government's decision to reduce tax breaks in those localities.
The township heads held a meeting Sunday with the deputy director general of the tax authority, Boaz Sofer, at the end of which they announced their plans to move forward with the strike since their demands to cancel the cuts were not met. The strike, which will include shutting down local schools, is scheduled for Wednesday. Township representatives plan to meet Monday morning with the chiefs of all of the Knesset factions in hopes of lobbying them to join their cause.
Until now, close to 160 municipalities and local councils adjacent to the northern border with Lebanon have received tax breaks totaling NIS 740. Since the state moved to add an additional 300 communities to the list of towns receiving the benefits, the townships currently receiving the benefits would in practice receive less. Currently, the benefits stand at 13 percent. Once the list of towns is expanded, some communities would only receive 7 percent while others would see their tax breaks wiped out entirely.
The chairman of the front-line towns in the north, Shlomo Buhbut, said Sunday that reduction of tax breaks could lead to "murder" of wage earners in the area and a total collapse of whole communities. Buhbut said the township heads decided to wage an uncompromising campaign to reverse the decision.
The head of the Horpish council, Raka'ad Hiradin, said the strike will encompass all municipal services, including schools. Hiradin said he anticipates that local businesses will follow the municipalities' example and shut down their operations since, according to Hiradin, the reduction in tax breaks harms all sectors.
On Wednesday, municipality heads from 16 communities plan to demonstrate in the Kiryat Shmona region. Defense Minister Ehud Barak is scheduled to visit the area on the same day to meet with local officials.