Finance Committee Approves NIS 15 Billion Aid Plan for Business Sector Following Gaza War

Finance Committee has given its approval for the implementation of a comprehensive aid plan for the business sector following a recent conflict. The plan, developed by the Ministry of Finance, is set to be in effect for the months of October and November, with an estimated cost of NIS 15 billion.

Under this initiative, businesses with a sales turnover of up to NIS 400 million will be eligible for compensation if their income has been adversely affected by at least 25% during the conflict. This compensation will be calculated based on the fixed expenses of the business, offering up to 22% of these expenses in support. Additionally, self-employed individuals with incomes of up to NIS 300,000 will receive grants based on the extent of income loss.

Furthermore, the plan includes streamlined access to unemployment benefits for workers who need to take sick leave during the conflict. Another aspect of the aid program involves subsidizing employee wages, with rates of up to 75%. The compensation ceiling for both grants combined will be NIS 600,000 for businesses with turnovers of up to NIS 100 million, gradually increasing to NIS 1.2 million for larger enterprises.

In a four-day series of discussions held this week by the Finance Committee, several notable adjustments were made. Notably, the agricultural sector will receive increased compensation, and construction contractors, initially excluded from the plan, will now be included. Additionally, at the committee's request, workers over the age of 67 will be entitled to grants when on sick leave, similar to the support they received during the COVID-19 pandemic.

Non-profit organizations will also find it easier to access the aid plan, with a supplementary plan specifically intended for such organizations. This plan will be published and submitted to the committee, with a budget allocation of not less than NIS 40 million. The aid plan is scheduled to run from October 7 to November 30, with the option for the Minister of Finance, subject to Finance Committee approval, to extend it until the end of the year.

An outstanding issue yet to be clarified is whether the track for full compensation will be extended to settlements up to 40 km from the border in Gaza. Finance Minister Bezalel Smotrich has announced his intention to do so, despite opposition from the Ministry of Finance's professional experts who raise concerns about substantial ownership and the potential addition of more settlements to this track.