Kahlon Tax-Break Plan Passes First Reading

YERUSHALAYIM -
Israel Finance Minister Moshe Kahlon. (Hadas Parush/Flash90)

The Knesset began its summer session on Monday, and in one of its first acts approved on its first reading the “Family Net” plan proposed by Finance Minister Moshe Kahlon. The plan which promises significant tax breaks and subsidies for working families and middle-class Israelis, including an increase in tax credits for families with children five years of age and under. The change to the credits for these families will provide working parents NIS 215 more per month on average, resulting in an increase in income of thousands of shekels a year for working parents with small children at home.

The plan was approved last Wednesday by the Ministerial Law Committee. Speaking after Monday’s vote, Kahlon said that the plan was far from complete, and that more components were being prepared. Among them are additional tax discounts for families where two parents work; government subsidies for after-school programs, with a cap of NIS 930 per month on costs for the programs; transfer payments for individuals who earn NIS 5,000 or less; and cancellation of import duties on children’s clothing and shoes.

“The Knesset summer session will be dedicated to the middle class,” Kahlon said. “In the last session we passed legislation to help working families by extending paid leave for parents of newborns, increasing the number of vacation days, increasing soldiers’ salaries, and more. In this session, we will increase the tax credits for middle class families, provide subsidies for day care, lower taxes on clothing and shoes, and further slash cell phone costs. We are narrowing the gaps between members of society and enhancing employment opportunities,” he added.