After weeks of pressure by Knesset members both inside and outside the coalition, the government appeared to have relented, and on Sunday, the media reported that Finance Minister Yuval Steinitz said that he was considering freezing or limiting the "drought tax," a special fine on excess usage that was originally designed to discourage Israelis from wasting water. In a statement later, however, Steinitz's office said the tax was here to stay, at least for now.
In recent days however, opponents of the tax have produced facts and figures to show that even conscientious Israelis who go out of their way to save water will be forced to pay monumental sums for water usage, which n
Many families have asked their water providers to separate the charges for water from the amount of tax they owe, opting to pay for the water, not the tax.
o middle class family, much less one that is poor, will be able to afford.
According to statistics presented by opponents of the tax, the average Israeli family will find itself paying as double, and possibly up to four times more for water as they are currently paying. Under the new tax law beginning in January 2010, each household member will be eligible to use 10 cubic meters of water at "regular" rates. Any use beyond that amount will trigger a charge of NIS 28 per month per cubic meter. In the period between July 1, when the law went into effect, and October 31, families of up to four members were allocated 32 cubic meters of water at "regular" rates. Larger families are eligible for larger amounts.
However, there have been many complaints on the way the tax is being implemented. So far, about half of the households in the country have received bills which include the water tax (collection of which officially began with the July bill) but many, following the lead of several MKs, have declined to pay the tax, at least until the Knesset irons out the issue. Many people report having received astronomical water bills – in the hundreds or even thousands of shekels, after having watered their lawns or hosted guests for the recent High Holidays, with the guests using the water allocated for the family. Many families have asked their water providers to separate the charges for water from the amount of tax they owe, opting to pay for the water, not the tax.
One of the prime opponents of the water tax is MK Moshe Gafni (UTJ), who has suggested suspending the tax for the winter months and taking the issue up again in the spring, when the current rainy season ends. Clarifying his earlier statement yesterday, Steinitz's office said that the Finance Minister would consider that idea, if, after examination, it became clear that Israel's water economy was improving. At that time, a statement by his office said, Steinitz would consider canceling the tax. So far, the statement said, the tax has caused a 20% drop in water usage.
The Ministerial Law Committee on Sunday rejected a private bill proposed by MK Dalia Itzik to cancel the drought tax altogether. The tax constitutes "an edict the public cannot tolerate or afford," she said. Similarly, MK Ronit Tirosh (Kadima) said that if public opinion continues to oppose the tax, the government will drop it. Kadima officials said they would continue pressuring the government to cancel the tax.
Meanwhile, the Treasury has in recent months pulled out all funding stops in order to ensure that several water desalination plants that have been under construction are finished as soon as possible – and as a result, a Treasury official said, the third of five planned desalination plants – and the largest of its kind in the world – will go online in Hadera before the end of the year.