MK Bezalel Smotrich (Jewish Home) sent a letter to Finance Minister Moshe Kahlon (Kulanu) and Finance Committee Head Moshe Gafni (UTJ), criticizing them for raising income tax for Palestinian Authority residents who work inside the pre-1967 borders.
"Lowering the amount of income tax credits given to those Judea and Samaria Arabs who work in the construction sector in the pre-1967 borders will raise the price of construction, as well as the end price for those looking to buy homes," Smotrich said.
"The Finance Minister is aware of this, and he even wrote about his efforts to close the gap between the cost of hiring Arab workers and the cost of hiring Jewish workers.
"The decision to raise income tax for Arab workers will result in a rise in housing prices. This alone is enough reason to oppose the law. We will not allow the government to raise taxes and the cost of housing while at the same time working to lower the cost of housing.
"Raising the income tax for Palestinian Authority Arabs will cause a ripple effect on the rest of Israel's economy. In addition, the PA will be the ones to benefit from the added taxes, since we transfer these workers' income tax to the PA.
"I don't understand the logic behind raising taxes on PA Arabs and forcing Israeli citizens to pay the price, especially since the PA works to harm the State of Israel," Smotrich concluded.