After days of unceasing talks, contradictory scientific opinions, and a public storm, a compromise has been reached on the drought tax, according to “IDF Radio" (Galei Zahal). The new proposal, which is opposed by Minister of Finance Yuval Steinitz, will freeze the drought tax for four months, from January through mid-April 2010, but will also gradually raise water rates by 40%.
Prime Minister's Office director general Eyal Gabbai will submit the deal to Prime Minister Benjamin Netanyahu tomorrow. The Ministry of Finance had first opposed freezing the drought tax, while the Ministry of National Infrastructures supported the freeze along with the rate hike.
At a press conference on Tuesday, Minister of National Infrastructures Uzi Landau said, "We weren’t surprised by the high water bills that people received. This was an emergency plan, and the complaints did not surprise us."
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2009
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