According to Channel 12's Yuval Sadeh, Finance Ministry officials oppose proposals to expand tax benefits, arguing that 15% of Israeli communities already receive such breaks, the policy is ineffective at strengthening settlements, and the heavy cost harms state coffers amid Israel's growing debt.
Channel 12's Yuval Sadeh reported Sunday evening that Treasury officials are pushing back against proposals to broaden tax-benefit zones. The officials' argument: 15% of Israeli communities already qualify for tax breaks, the instrument does not actually strengthen those settlements, and the rising cost—especially as Israel's national debt grows—makes the expansion fiscally irresponsible. The report does not identify the specific proposals or their sponsors, nor does it detail which communities currently receive the breaks. The Treasury's stated opposition signals a potential hurdle for any legislation seeking to extend the benefits, though no formal ministerial decision has been announced.
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