Former Israeli PM Bennett unveils benefits plan for northern communities — Jerusalem Post

Former Israeli Prime Minister and leader of the Beyachad party Naftali Bennett presented local government leaders in the country’s north with a draft “Confrontation Line Law.” The initiative provides for expanding the area whose residents and businesses would be eligible for state assistance, as well as tax benefits and municipal tax discounts.

As The Jerusalem Post reports, Bennett, together with party representatives Keren Turner, Bruria Naim-Arman and Nisan Zeevi, visited Israel’s northern border and met with heads of local authorities. According to the party’s assessment, the proposed law could affect about half a million Israelis.

Expansion of the assistance zone

The draft proposes expanding the confrontation line, which currently covers communities located 0–9 kilometers from the border, to 0–12 kilometers. Hatzor HaGlilit, Safed and other localities within the designated national priority area could be included in the support zone.

For residents, it is proposed to add four to six tax benefit points or introduce a phased tax exemption for five years. In an example provided by the party, a person with a monthly income of about 20,000 shekels could receive benefits worth from 8,000 to 15,000 shekels per year.

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Benefits for businesses

The initiative also provides for reducing corporate tax by 5–10 percentage points for companies with substantial activity in the designated area. According to the party’s calculation, a company with annual profits of 1 million shekels could receive an additional benefit of 50,000 to 100,000 shekels per year.

It is separately proposed to create a special tier within the Law for the Encouragement of Capital Investments, with a corporate tax rate of 0% to 4% depending on the company’s location. The party argues that the current system does not sufficiently encourage export manufacturers to relocate operations to communities along the confrontation line.

The draft provides for a municipal tax discount of 45% for residential property and 39% for businesses. The state, according to the authors’ plan, would fully compensate local authorities for lost revenue. Nisan Zeevi said that 360,000 people live along the confrontation line and, in his words, need practical solutions rather than unimplemented government resolutions.