Approved in a preliminary reading - Changes the tax bracket levels of the first residential apartment

The Knesset plenum approved in a preliminary reading a bill that is expected to significantly change the tax bracket levels of the first residential apartment, as early as the beginning of the next tax year - 2022.
The proposal submitted by a long list of MKs from the coalition and the opposition, initiated by MK Yoav Kish (Likud), stipulates that the purchase tax rates applicable to the buyer of a single residential apartment will change so that whoever buys a first apartment for up to NIS 3.44 million will pay purchase tax. Lower. Above this amount - the tax will be higher. It should be noted that on January 15, 2022, the stairs will be updated in accordance with the annual price index to be published on this day.
According to the bill, an increased tax rate will not apply to the purchaser of apartments in a building for rent or the purchaser of apartments in a building for institutional rent (continuing tenant), but reduced tax rates will apply to him. The committee empowered to discuss this bill will be the Finance Committee.
The explanatory memorandum to the bill states that "in view of the rise in housing prices in Israel, which has reached a rate of 10% in the past year, it is proposed to facilitate buyers of residential apartments, whose only apartment is purchased at a lower price range, including young couples. "Reducing the high tax brackets on the purchase of a single residential apartment in favor of lowering the lower tax brackets. This is a proper balance that allows it to make it easier for buyers of apartments in small amounts over buyers of luxury apartments."
MK Kish: “Glad I was able to persuade the coalition to support the bill and extend the tax exemption to first-time home buyers and housing developers. "We need to lead a significant move, increase the supply of land and market it at prices that will reflect a halt in the rise in prices - we must not continue to raise the prices of the marketers."
Recall that a month ago came into force the increase in purchase tax for investors on a second apartment from 5% to 8%. This is close to a year and a half after the previous Minister of Finance, Israel Katz, canceled a similar increase made by his predecessor, Moshe Kahlon.