Local tax reforms to benefit students, families with kids

December 27, 2011 18:14

Students, low-income earners and families with small children were the biggest beneficiaries of municipal tax (arnona) reforms announced by Interior Minister Eli Yishai Tuesday.

Under the reforms, which were based on the recommendations of a committee led by former ministry director-general Dov Kahat, the income threshold for families eligible for arnona discounts will increase by 25 percent.

Accredit non-profit organizations and students living in dormitories will be granted an across-the-board 66% municipal tax reduction, while a government decision to give reserve soldiers a 5% discount will also be implemented.

New considerations will be taken into account when calculating family concessions. Children aged under five will be counted twice, and families with handicapped individuals will also be eligible for larger reductions. Payments to reserve soldiers, higher education tutorial costs and tax-free scholarships will be deducted from annual income when calculating concessions.

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