The government approved a change in the law giving grants to the self-employed

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by Ifi Reporter Category:Financial Mar 18, 2021

The government last night approved the change in the law in favor of the self-employed, which is intended to allow the calculation of grants during the eligibility period of this year through a comparison to two thousand and eighteen or two thousand and nineteen, according to the dealer's choice. Prior to the approval of the reservation, only two and nineteen reports were allowed to be compared. Our correspondent, Liel Kaiser, notes that the move was first approved yesterday by the Finance Committee in an exceptional procedure, at the request of Finance Minister Katz, as part of a reservation to the law awarding the signal to SLA soldiers who served in Lebanon. The Attorney General, after the law was approved by the committee, was approved by the ministers in a telephone poll.
The Finance Committee last night approved the amendment of the Grants for the Self-Employed Law in a sudden scheduled hearing, after Finance Minister Israel Katz demanded a change in the law he passed only a few months ago, following complaints from business owners that the 2018 cycle could not be compared. The change in the law was approved by the committee despite the unusual opposition within the Ministry of Finance to the minister's initiative, and the attorney general's announcement, Adv. Assi Messing, that the law cannot be amended now. Tonight the Knesset plenum will convene to approve the change.
These are the first grants for 2021, for which two days ago the Minister of Finance reprimanded the director of the Tax Authority, Eran Yaakov, for changing the rules for eligibility for the grant without his knowledge, even though it is a law he himself initiated - according to the Tax Authority. By the end of 2020 the self-employed could have compared their turnover to 2018 or 2019, resting most for them to get a bigger grant.
As of the beginning of 2021, the law stipulates that the turnover can only be compared to that which was in the business in 2019, and it is no longer possible to choose 2018 for the purpose of comparison. This means that many self-employed people may not receive the grant at all, since their income has not decreased at the required rate, or receive a reduced grant.
The Minister of Finance resented on Tuesday that there will be a deterioration in the payment of grants to the self-employed starting in January 2021, but the Tax Authority replied that they are complying with the law, which they did not enact, according to which from the beginning of the current year. 2021 It is no longer relevant what the 2018 cycle was.
The Minister of Finance, angry at the situation, asked the chairman of the Finance Committee, MK Moshe Gafni, to urgently convene the committee for a special discussion to amend the legislation, which will allow a comparison for 2018. However, at this stage it became clear that the Ministry of Finance For a change in the current timing, less than a week before the election.
During the discussion, a reservation was submitted on behalf of the Minister of Finance, which states that regarding the calculation of assistance grants for the self-employed and a controlling employee (social grants), also in 2021 a comparison will be made regarding the decrease in business turnover for 2018 or 2019, according to the year. .
Against the reservation, the spokesman for the Ministry of Finance and a representative of the Ministry of Justice argued that this was a reservation that was not part of the government bill and that this proposal did not appear before the Ministerial Committee for Legislation and therefore did not pass the orderly procedure. From NIS 6 million, and therefore the approval of 50 MKs is needed in order to approve it. In addition, the representative of the Tax Authority claimed that in advance and clearly determined that the comparison will be made with the 2019 cycle only.
The Treasury noted that funding for the additional grants to be distributed will be budgeted within the corona boxes, but it should be emphasized that the fact that the money will be budgeted does not require actual expenditure.
Itai Temkin, Budget Division, Ministry of Finance: "If the proposal is accepted, it increases government spending by more than NIS 6 million, initial estimates speak of hundreds of millions. The question is whether this was in our initial estimates, so it was built. The law when we built the forecast. "
Finance Minister Israel Katz: "Government policy is in favor. People are waiting for this assistance. The choice between 2018 and 2019 has helped a lot of people. This reservation is covered. The government's position is unequivocal and I represent it. Anyone who wants to resist will not hold government consent. Never. "I only approved a comparison to 2019 and I would not approve it. This money exists, and the assistance to businesses must now be given."

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