The bill authored by Moshe Gafni, head of the parliamentary finance committee, has been approved in a preliminary reading during the Knesset plenary meeting. The proposed legislation aims to freeze the planned municipal tax increase, known as “arnona,” which was set to rise by 5.3% on January 1, 2025.
The bill seeks to eliminate the link between the municipal tax rate and the level of salary increases in the public sector, which have seen significant growth this year. Moshe Gafni, who is also a Knesset member and leader of Shas party, suggests compensating municipalities for the frozen “arnona” increase using budgetary funds.
During the debate, many Knesset members expressed their support for the bill and highlighted its importance in alleviating financial burden on residents and providing financial assistance to municipalities through alternative means. The bill has now been forwarded to the Finance Committee for further preparation before its first reading in the Knesset plenary session.
