Northern cities to strike over reduced tax breaks

November 1, 2015 00:40

Six cities in the Western Galilee plan to go on strike Sunday, because their tax breaks were reduced after the government changed the criteria for periphery towns to receive the benefits.

Acre, Nahariya , Ma’alot-Tarshiha, Mateh Asher, Kfar Vradim and Mizra plan to close all municipal services and schools, except for special education, for an unlimited amount of time.

The Histadrut in the Western Galilee will join the strike, stopping work in factories in the area.

Knesset Finance Committee chairman Moshe Gafni, with the support of coalition party leaders, changed the system of tax cuts for periphery towns from a map in which people north and south of certain points received the benefit, to one with different income criteria and varying levels of cuts.

The number of periphery towns and cities to receive tax breaks will increase from 192 to 407, based on new eligibility criteria. The budget for the expanded list will go up from NIS 850 million to NIS 1.2 billion.

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