Netanyahu, Smotrich present plan to counter Israel's high cost of living
The prime minister announced a reduction in the increase in the price of water and electricity by an average of 70%
Israel will freeze property taxes for a year and cancel or cut back recent hikes in the costs of electricity, water, and fuel, Israeli Prime Minister Benjamin Netanyahu said Wednesday, unveiling preliminary measures to ease inflation.
Netanyahu's Finance Minister Bezalel Smotrich, speaking alongside the prime minister at a televised news conference, said the government would maintain fiscal responsibility while pursuing the plan.
"We take care of all important areas of life for the benefit of all Israeli citizens, and of course, the first area that we talked about and discussed is the cost of living," Netanyahu said.
The prime minister also said that "over the past year and a half, our economy has entered an inflationary spiral, and interest rates are skyrocketing. Every rise in the price of electricity, water, fuel, and property tax leads to a new increase. These increases affect all families."
Plan measures
1. Property tax freeze for one year
2. Cancellation of recent fuel price increases - 0.264 cents per gallon
3. An average drop of 70 percent in the price of electricity
4. A 70 percent reduction in the price of water
5. Complete cancellation of the electricity price increase for approximately 100,000 small and medium-sized enterprises
6. Financial subsidy for 300,000 beneficiaries with a heating bonus
Monthly savings for an average family:
Property tax - around $1.75
Fuel - about $3
Electricity - about $6
Water - about 0.44 cents per month
“We are working with teams from the Ministry of Finance and the Ministry of Economy to formulate various plans to tackle house prices and to provide free education for 0-3-year-olds, but change needs to start as soon as possible without waiting for budgetary discussions. Sometimes, in times of crisis, special measures are needed for a limited period. We are acting in a reasonable and responsible manner, putting spokes in the wheels of inflation," Netanyahu said.
For his part, Smotrich affirmed that "the whole world is going through a deep economic crisis, which is manifested by a surge in prices and a sharp increase in inflation. The cost of living is no longer a slogan or a headline, it is an important problem that weighs on the citizens of Israel every day. I am the father of a family of seven children, and we live this difficulty like all the people of Israel. Prices are rising and making it harder for all of us."
On Tuesday, the finance minister signed an executive order that extends the cancellation of the excise tax (indirect taxes levied on the sale or use of products such as alcoholic beverages, tobacco products, and energy products) on coal, which should affect the price of electricity for the consumer.