Holon's Tax Cut Attracts IKEA

The Holon municipality can notch up a win, as the popular furniture retailer IKEA is very interested in placing its second Israeli store by Holon junction. City hall last week declared that it was slashing municipal property taxes (arnona) for businesses.

The Swedish chain IKEA has one Israeli branch, by the Poleg Intersection outside of Netanya, which has proved enormously successful. The company is currently eyeing five possible sites for a second local outlet. The five hopefuls are Bilu junction, the Yavne industrial zone, the Holon industrial zone, Bnei Darom junction and Rishon Letzion.

"We are examining several alternative sites for our second store, between Ben-Gurion Airport and Ashdod, and are continuing to check the economic parameters of each alternative," IKEA responded.

Last week Holon announced that it would slash its business property tax rates by 70 percent for commercial space and 40 percent for industrial space, such that businesses will now be paying only NIS 52 per square meter annually, the minimum that the Interior Ministry allows.