Ministry of Finance Unveils Compensation Plan for the Gaza War-Affected Businesses

wwwww

by Ifi Reporter Category:Government Oct 30, 2023

In a move aimed at providing crucial support to businesses grappling with the aftermath of the 'Iron Swords' war, the Ministry of Finance has released a memorandum of law outlining a compensation plan. The plan, designed to be swiftly legislated, is set to pave the way for grant applications as early as November 15th, with a primary focus on small businesses and self-employed individuals who have suffered significant economic setbacks due to the conflict.

The plan, outlined in the memorandum, indicates that small businesses can anticipate compensation of up to NIS 600,000, while self-employed individuals may be eligible for up to NIS 12,000 in relief.

The estimated cost of the program stands at a staggering NIS 8 billion, an indicator of the government's commitment to alleviating the financial burden carried by war-affected businesses.

Initially applicable to business activity in the months of October and November, the plan also allows for potential extensions until the end of the year, contingent on the approval of the Finance Committee.

The memorandum of the law states, "As a result of the ongoing combat operations as part of the 'Iron Swords' war, the regular economic activity of some businesses was damaged for a long period of time, and this in light of the restrictions and directives of the Home Front Command, the closure of the education system, and the mobilization of hundreds of thousands into the reserves. As a result, there are businesses that have experienced a decrease in turnover as part of dealing with the special situation on the home front in October 2023."

Moreover, it highlights the unique challenges posed by the 'Iron Swords' war, stating, "Unlike previous rounds of fighting in which the damage of the war was limited to certain areas, in the 'Iron Swords' war, the effects of the fighting are felt in all parts of the country. Therefore, it is not proposed to give full compensation that would completely heal the businesses."

The compensation plan consists of grants based on fixed expenses and salary expenditures, with the amount determined by a formula accounting for the depth of the income reduction.

Businesses can expect compensation of up to 22% of their fixed expenses and up to 75% of their salary expenses. The maximum grant for businesses with a turnover of up to 300 million NIS is capped at 600,000 NIS, while those with sales turnover between 300-400 million NIS could receive up to 1.2 million NIS in assistance.

Self-employed individuals with an annual income of up to NIS 300,000 will also be eligible for grants, calculated based on their income and the extent of their losses. The maximum grant for self-employed individuals can reach NIS 12,000.

The plan also includes measures to facilitate the receipt of unemployment benefits, aiming to assist businesses in retaining employees. Notably, it reduces the waiting period for unemployment benefits, allowing employees to claim them just 14 days after unemployment begins, as opposed to the usual 30 days. The Ministry of Finance will reimburse the National Insurance for the anticipated expenses associated with these concessions, totaling NIS 120 million.

The release of this compensation plan marks a significant step in alleviating the financial strain faced by businesses and individuals affected by the 'Iron Swords' war, reinforcing the government's commitment to providing necessary support during these challenging times.

380 Views

Comments

No comments have been left here yet. Be the first who will do it.
Safety

captchaPlease input letters you see on the image.
Click on image to redraw.

ABOUT IFI TODAY

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum

Testimonials

No testimonials. Click here to add your testimonials.