The Knesset House Committee today announced that it will reduce hotel benefits for MKs staying overnight in Jerusalem. Until now, all MKs who were not residents of the city were entitled to full financing for hotel overnights in the city, or else for $634 for rent. The benefit was not taxed.
At the recommendation of the Gronau committee on salary and benefits for MKs, the House Committee decided that only MKs who live more than 100 kilometers from Jerusalem will be eligible for hotel overnights in the city and for the tax break based on this benefit.
Knesset director general Avi Balashnikov said that the decision would save NIS 350,000 a year.
An MK who lives within 100 kilometers of Jerusalem will continue to be eligible for a hotel overnight, but will pay tax on the benefit. The tax is estimated at 50% of the cost of the hotel overnight. The changes will come into effect in 2009.
The Gronau committee also recommended that, in view of the slump in the shekel-dollar exchange rate, to update the maximum amount paid to an MK who wants to rent an apartment in Jerusalem to NIS 2,800.
Published by Globes [online], Israel business news - www.globes-online.com - on July 23, 2008
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