10,000 businesses are expected to be compensated for the decline in turnover due to Omicron strain

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by Ifi Reporter Category:Financial May 30, 2022

At least another 10,000 businesses are expected to receive compensation for the decline in turnover in their businesses during the peak of the corona plague during this period the Omicron, which left about half a million citizens in isolation in homes and caused a significant decline in growth in the first quarter of the year.
The addition of thousands of business owners to the compensation and grant scheme will be made possible due to an improvement in the scheme of aid grants to businesses that were adversely affected by the spread of the Omicron strain, which was decided by the Knesset Finance Committee. This is despite the fact that three months have passed since the period for which the funds will be paid to businesses - January and February 2022.

Following the request of the committee members, along with the requests of the self-employed, it was agreed that the grant, which comes in the wake of the omicron wave that led to high morbidity that caused a large number of sick days and isolation in the economy, affects businesses with NIS 18,000 to 60 million. -February 2019 and have experienced a decrease in their business turnover, and it comes in the form of a single grant.
For small businesses with a turnover of up to NIS 300,000 in the relevant year, it was agreed to the committee's requirement to reduce the percentage of damage that qualifies for the grant, which will be 25% instead of 35% in the original law. The committee also demanded that in the case of these businesses, the amount of grants exceed the amount proposed in the original law by 15%, so that the amount of compensation will be NIS 4,350 to NIS 9,350 for the business, instead of NIS 3,000 to NIS 8,100 in the original law. The amount of the grant varies according to the height of the business's cycles.
For businesses with an annual turnover of NIS 300,000 up to NIS 60 million - the grant will be calculated according to the amount of damage to the business turnover, with eligibility starting from a 25% decrease in business turnover in the relevant period compared to the base period, instead of 35% in the original law. , Thus increasing the percentage of compensation. The maximum grant that can be reached will be 20 percent of the bi-monthly turnover during the base period, and the maximum grant amount can reach 600,000 and not less than NIS 9,350, while the minimum amount was increased following the small business compensation update, when it was 8,600. NIS.
At the request of the committee, it was determined that with regard to the union of dealers, the maximum turnover for eligibility for the grant will be NIS 100 million, when there will be further updates in the section, in view of requests to increase the amount.
In addition, the committee's requirement changed the condition for businesses that distributed dividends, when in the original law any distribution of dividends in 2020-2021 disqualified a business from receiving the grant, in light of comments by Knesset members and businesses The wording of the law has been changed and it has been determined that a dividend distribution will be possible and eligibility will be denied only once a dividend distributed during this period is higher than the company's accrued profits as of the end of 2019.
It was further determined that a business would not be eligible for a grant to the extent that its business turnover, plus the grants it received for the corona plague in 2021, resulted in a 15% increase in turnover in 2021 compared to its base turnover, as opposed to only a 10% increase in the original law. The change was introduced at the request of the committee.
The committee has finished reading the law and is expected to convene tomorrow to vote on the wording of the law and the reservations submitted in its case. The opposition welcomed the improvements in the outline of the law but noted that there are further improvements needed in the law in order for it to work properly with the self-employed, and noted that they will stand by the various reservations. It should be noted that the plenum does not have a majority in the coalition, but the Ministry of Finance believes that the opposition will not thwart the law that helps the self-employed public who were harmed in their business from the corona.
MK Ofir Katz: "A perforated law has come to our committee, which aims to reduce as much as possible the self-employed who will be entitled to the grant, and those who will be entitled to receive as little as possible. Following my and my friends' struggle, "In order to do good with the self-employed. We will continue to fight."

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