Knesset passes Economic Arrangements Law

The Knesset has passed the second and third readings of the Economic Arrangements Law by 61 votes to 57.

The Economic Arrangements Law, which accompanies the annual budget, includes major reforms such as gradually raising the retirement age for women from 62 to 65, over the next 11 years. The law also includes a range of measure to compensate women including doubling work grants, extending unemployment benefits, higher social support payments and an allocation of NIS 82.5 million for professional retraining of women aged 57-60.

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The Economic Arrangements Law also includes the introduction of the congestion charge in the Tel Aviv Metropolitan region from 2025. According to the law, Between 6.30 am and 10 am for vehicles traveling towards Tel Aviv, it will cost NIS 5 to enter the outer ring, NIS 10 to enter the middle ring and an additional NIS 10 to enter the inner ring for a maximum of NIS 25. Between 3 pm and 7 pm cars in both directions will pay NIS 2.50 to enter the outer ring, NIS 5 to enter or exit the middle ring and an additional NIS 5 to enter or exit the inner ring. Motorcycles (and motor scooters), buses and emergency vehicles will travel for free, while trucks will pay double. Taxis will pay 50% which will immediately be added on to their passenger’s fares.

The law also includes reforms to allow competition in the kashrut market and regulations to bring imports into line with EU standards.

The law also cuts the ceiling of use of cash from NIS 11,000 to NIS 6,000 from August 2022. Cash deals between private individuals will fall from NIS 50,000 to NIS 15,000, except for the sale of second-hand cars where the ceiling will remain at NIS 50,000.

Minister of Finance Avigdor Liberman said, “Since the Economic Arrangements Law was introduced in 1985, no Economic Arrangements Law has ever been passed so full of revolutionary reforms that bring a range of huge changes for Israel’s citizens.”

Early this morning the Knesset passed the 2021 Budget Law and it is expected to pass the 2022 Budget Law tonight. The 2021 budget is a record NIS 609.1 billion and includes major expenses due to the Covid crisis and growing debt repayment, while the 2022 budget is NIS 573 billion. The 2021 budget is the first to have been passed since March 2018.

Published by Globes, Israel business news – en.globes.co.il – on November 4, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.