Prime Minister Sharon’s emergency economic bill passed in its second and third, (final) readings in the Knesset plenum last night by a solid majority. 74 MK’s voted in favor of the third reading of the bill, while only 28 voted against it. The Shas party Knesset members as well most of the Labor party MK’s, supported the bill. However, Labor MK Nawaf Mazalha was outraged that Labor supported the plan and announced that he would be quitting the party.
Under the bill, all child allotments will be cut by 4%, with another 20% reduction for each child of parents who have not served in the army. In addtion, Israel’s Value Added tax will be increased from 17-18%. Also, tax breaks for families living in Yesha, (Judea, Samaria, and Gaza) would be reduced from 7% to 6% this year and down to 5% in 2003. The bill will also have an impact on many other sectors within Israel’s population.
Under the bill, all child allotments will be cut by 4%, with another 20% reduction for each child of parents who have not served in the army. In addtion, Israel’s Value Added tax will be increased from 17-18%. Also, tax breaks for families living in Yesha, (Judea, Samaria, and Gaza) would be reduced from 7% to 6% this year and down to 5% in 2003. The bill will also have an impact on many other sectors within Israel’s population.