Bennett and Liberman in 2018
Bennett and Liberman in 2018Hadas Parush/Flash90

Israeli Prime Minister Naftali Bennett and Finance Minister Avigdor Liberman (Yisrael Beytenu) are expected to announce Wednesday afternoon a government plan to moderate the rise in the cost of living.

Earlier this week, Bennett arrived at Liberman's office and instructed him to formulate a plan to immediately reduce the rise in the cost of living.

According to Israel Hayom, the State will absorb some of the rise in the electricity price, so that customers see a price hike of around 2% rather than 5.7%. There will also be a reduction in income tax for working parents, negative income tax for low earners, and a removal of customs fees for dozens of imported products, including meat and chicken. The price of gas, however, will not be reduced.

Israel Hayom noted that property taxes rose about 2% in the past month, but it is not mentioned in the government plan. Over the course of 2022, the Israeli public will pay nearly 33 billion in property taxes, compared to just 25 billion ten years ago.

This rise affects families twice: first, in the additional direct expense paid for their own living quarters, and second, since businesses - which are charged more per square meter than residences - pass the price hike on to their customers.