Last night, the Knesset gave second and third readings to the bill to award extra income tax credit points to parents, and to raise the work grant. The bill passed with the support of the Joint Arab List, after an announcement by opposition members that they will vote against all government bills from now on.
The bill, part of Minister of Finance Avigdor Liberman’s plan to deal with the rising cost of living, provides that in 2022 a parent will be given an additional tax credit point for each child aged between six and twelve. The measure applies to some 610,000 working parents, and will amount to NIS 2.1 billion. Each credit point is worth NIS 2,796 annually.
In addition, the bill raises the work grant by 40% for 2022. Anyone who was eligible for a work grant in 2021 will receive 30% of the grant as an advance on the grant for 2022. The additional grant will be NIS 1,600 on average for each eligible person, and will cost a total of NIS 500 million. Where both members of a couple are eligible, the extra can reach NIS 3,200.
Published by Globes, Israel business news - en.globes.co.il - on May 17, 2022.
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