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The cost of living in Israel may soon become more expensive, as the Israeli Ministry of Interior announced on Tuesday night that arnona (local tax) rates will increase by 5.29 percent next year.
This marks the biggest increase in Arnona fees in more than 17 years. In contrast, Arnona fees increased by 2.68% last year, but had risen by less than 2% in the three years prior to that.
Prior to this week, the largest rate increase observed in recent years was in 2009, when the Alnona rate rose by 4.57%.
Local authorities can apply for exceptions to the updated rates set by the Home Office, meaning some could charge even higher rates if approved.
The rate is determined automatically through a mechanism introduced as part of the Accord Law in 2007. It takes into account recent changes in the Consumer Price Index and average annual income. Construction at the entrance to Jerusalem (Credit: MARC ISRAEL SELLEM/THE ELUSEALM POST)
Opposition: The government is taking money out of Israelis’ pockets.
The opposition Knesset’s Finance Committee Coordinator Yesh Atid M.K. Vladimir Beliak accused the government of making false promises to “freeze Arnona” before the 2022 elections.
“From the beginning of the government, they promised to freeze Arnona. This latest increase is crazy and brazen, especially as[the government]continues to celebrate the NIS 10 billion federation fund.”
“At least a dozen useless ministers are still walking among us, costing us some two billion shekels in total. Every day this government survives, we are undermining the safety and resilience of our people and They are extorting money from their pockets.”
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