Finance Committee Approves 100% Compensation for Ashkelon and Mavki’im Residents for Indirect Damage

The Finance Committee, led by MK Rabbi Moshe Gafni (United Torah Judaism), held a session on Tuesday, during which they ratified the Property Tax Regulations. Under these regulations, Ashkelon and Mavki’im will be classified as frontier localities, granting their residents full compensation for indirect damage at a rate of 100%. This decision was prompted by the significant harm endured by these localities and businesses due to the recent turmoil in the region.

Frontier localities encompass areas situated within a 7-kilometer radius of the Gaza Strip. This change, proposed as a temporary provision lasting one year, grants residents of Ashkelon and Moshav Mavki’im full compensation for indirect damage at a rate of 100%.

Amir Dahan from the Israel Tax Authority (ITA) explained, “These frontier localities are situated around 7 kilometers to the south and 9 kilometers to the north. Businesses in these areas, both in northern and southern Israel, will receive compensation for indirect damage equivalent to what they would have earned under normal circumstances.”

The debate saw calls from both coalition and opposition MKs to extend the regulations for at least one year, rejecting a three-month period. There were also requests to consider including additional localities as frontier localities.

Committee Chair Rabbi Gafni expressed his hopes for a broader outline, suggesting a defining line at 20 kilometers and the potential inclusion of Ofakim. Regarding Ashkelon, Rabbi Gafni firmly stated, “I won’t put it to a vote for a three-month period. That makes a mockery of the Knesset, of the ITA, and of the issue. I am asking that you agree to vote on this for a year, if you don’t agree to make it a permanent provision.”

Ashkelon Mayor Tomer Glam highlighted the unique challenges faced by Ashkelon and urged the committee to provide assistance. He argued for Ashkelon’s inclusion as a permanent frontier locality, stating, “Ashkelon is at the front line. I am asking all the committee members to separate the issues. I understand the desire to help everyone, but the rationale today is to help Ashkelon. As for the time span, I think it should be permanent, but if not, it should be as long as possible. Three months is a joke.”

In response to the discussion, ITA representatives confirmed that the Finance Ministry had approved a one-year period as requested by the committee. The regulations were unanimously approved. ITA officials also committed to assessing the situation of other localities mentioned by committee members. These regulations will be in effect from Oct. 7, 2023 through Oct. 7, 2024.