Knesset panel passes bill granting tax breaks to Sderot residents - Haaretz

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Mon., January 21, 2008 Shvat 14, 5768

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Last update - 14:07 21/01/2008

Knesset panel passes bill granting tax breaks to Sderot residents

By Zvi Zrahiya, Haaretz Correspondent

Tags: Roni Bar-On

The Knesset Finance Committee decided Monday to pass a bill filed by Finance Minister Roni Bar-On, which would allow Sderot residents to receive tax discounts of 25 percent for incomes reaching up to NIS 200,000 for the 2008 year.

Bar-On explained to the committee that the 25 percent tax break for the year of 2007 expired, and asked to lengthen the tax benefit for another year.

In May 2007, the Knesset Finance Committee passed a motion that granted frontline status to Sderot and other communities near the Gaza Strip.

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The finance minister maintained that even before the bill was voted upon, various petitions were filed to the High Court of Justice regarding the list of frontline communities in which their residents are eligible to receive special protection packages, certain tax breaks and other benefits.

The petitioners claimed that the list was not formed with clear criteria as to what constitutes a frontline community. Following the petitions, it was decided, along with a recommendation from Attorney General Menachem Mazuz, to compile a governmental bill that would reorganize the list of frontline communities based on clear, unified, and equal criteria.

A panel, made up of finance and justice ministry representatives was then established to probe the needed criteria that would enable a community to grant its residents the benefits, and establish new standards to label a community as a 'frontline' community. The panel also had to recommend the amount of the tax discounts.

Related articles:

PM: Israel won't let humanitarian crisis erupt in Gaza

Frontline status approved for Sderot-area communities

PM, pressed to act, vows to grant Sderot 'frontline' status

Editorial: The Home Front's hysterical calming

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