Infrastructures Minister Uzi Landau called, Monday, for the repeal of value-added tax on water and sewer bills. Speaking at a contract-signing ceremony for a desalination plant in Ashdod, Dr. Landau said, "The least the government can do is to waive the VAT component of the water and sewer tariff. The VAT burden is unecessary. It's a tax on an essential item which does not return to the water market and there's no reason to demand it of the public." He added, "This does not apply everywhere, but where it does, the state should help."
Landau called the establishment of desalination facilities an important project but noted that they cost money, most of which is paid by the public. He said the water market has become a closed one, in which money from water bills return to fund such projects.