On Monday evening, November 30, the Knesset, 57 votes, with no abstentions voted against, approved on second and third readings of the bill, forming a single list of peripheral settlements, whose residents are entitled to benefits when you pay income tax.
In total, the number of privileged settlements increased from 187 to 403. Four settlements, were excluded from the list (Nahariya, acre, mA’alot Tarshiha and Kfar Vradim) will continue to receive benefits in the next two years.
Settlements, extent of benefits to which reduced, will also receive benefits in the same amount over the next two years.
The cost of benefits for the state budget grew from NIS 800 million to 1.2 billion shekels a year.
The law was passed at the request of the superior court of justice after a claim of discrimination made by members of the Druze and Arab communities, towns which were not represented in the list.
A new list is generated according to uniform standards based on the scores assigned to the three criteria – the index of peripherality (distance from center), close to the border and socio-economic level.
Residents of settlements, who scored 25-49 points, got 7% tax relief on income up to 132.000 shekels a year, residents of points scored 50-59 points – 10% relief on income up to 162.000 thousands of shekels per year, and points scored 60 points or more – 12% benefits on income up to 192.000 shekels a year.
In addition, the settlements of the Negev and Galilee will receive additional benefits in the amount of from 1% to 6%.