The Finance Committee approved the grants bill for a second and third reading in the Knesset

The Finance Committee, headed by MK Moshe Gafni, approved the second-time grants bill for a second and third reading. The bill stipulates the distribution of one-time grants to Israeli citizens, in order to encourage consumption and employment and drive the wheels of the Israeli economy. For a child, a one-time grant in the amount of NIS 500 will be paid, up to the fourth child in the family, for the fifth child - and onwards the grant will be NIS 300. For a resident of Israel over the age of 18 or a married boy or girl, a one-time grant in the amount of NIS 750 will be paid.
The law also stipulates that an additional NIS 750 will be granted to the grant, to populations of recipients of various benefits and pensions listed in the proposal. It is also proposed to deny eligibility for the grant and supplement to the grant, except for a child, 121B of the Income Tax Ordinance in 2018 and from an individual who has not submitted the 2018 report. An application for a grant can be submitted up to one year from the date of commencement of the law.
The committee further added to the bill that no offsetting will be made in respect of debts against the grants.
During the discussion, the Minister of Finance, Israel Katz, announced that individual soldiers discharged from grants in the amount of NIS 4,000, amounting to NIS 8 million, will be distributed. In addition, the Minister noted that all regular servants who have been or will be released during the entire year 2020, will be entitled to a grant of an additional NIS 500 over the NIS 750 they are entitled to under the one-time grants law. The addition is for discharged soldiers as well as national and civilian service servicemen who complete their services during this period. The supplement will be granted under the Veterans Law.
In addition, the law approved a reduction in the purchase tax for apartment investors back to 5%. A temporary order on the subject was due to end at the end of the year, after the former finance minister raised the first tax bracket to 8% in 2015, the temporary order brought at the request of the finance ministry repeals the temporary order immediately.
The legal advice to the committee opposed the move, noting that this is an issue that is not related to the law, and that this will actually help buyers of investment apartments and not young people, buyers of first apartments.
On the other hand, the Minister of Finance claimed that this would stimulate the housing market, in view of a significant decrease in construction starts and home purchases, and that as soon as the cost of a second apartment in Israel decreases, there will be more apartments for rent. To the economy and the public.
Earlier, the Committee on Second and Third Reading approved the Bill - Basic: State Economy (Amendment No. 10), which stipulates that an additional amount of approximately NIS 6.72 billion be spent in 2020, for the purpose of financing the program for the payment of one-time grants. The amount increased by NIS 220 million in light of an agreement reached regarding the distribution of grants.