Prime Minister Benjamin Netanyahu opposes the plan for 0% VAT on new apartments, Minister of Finance Yair Lapid's pride and joy. In a discussion today in the Knesset Finance Committee, MK Moshe Gafni (United Torah Judaism) revealed that Netanyahu had denied instructing committee chairman Nissan Slomiansky to go ahead with the bill in the committee.
Slomiansky claimed that Netanyahu had not spoken with him directly on the matter, but with Minister of the Economy and Jewish Home chairman Naftali Bennett.
Gafni told "Globes" today, "We (Gafni and MK Yakov Litzman, L.W.) were in a long meeting today with Netanyahu, and it's obvious to us that he opposes the plan. He told us unequivocally that he had not spoken with Nissan Slominasky about 0% VAT. He made it clear that he opposed the bill."
Political sources have been saying for some time that Netanyahu opposes the 0% VAT plan, which is expected to cost the state budget NIS 2-3 billion, due to the expected drop in tax revenues.
Netanyahu has so far refrained from publically opposing Lapid's plan, and it is believed that he will let Lapid fall together with his bill. Lapid has been having great difficulty in getting the bill through the Knesset, and is getting no backing from Netanyahu.
Lapid undertook to get the bill passed before the Knesset goes on its summer recess, which did not happen. He is now promising to get it passed when the Knesset reconvenes after its recess on October 23, and is promoting the bill in the Finance Committee, but opposition MKs are giving him a hard time with over 2,000 objections that must be discussed.
The Prime Minister's Office declined to comment.
Published by Globes [online], Israel business news - www.globes-online.com - on September 9, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014