Gov't okays measures to lower cost of living

Cabinet approves Trajtenberg C'tee recommendations calling for more gas stations, improved public transportation.

December 18, 2011 15:45
2 minute read.
PM Netanyahu at cabinet meeting

PM Netanyahu at cabinet meeting 311. (photo credit: Marc Israel Sellem)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

The cabinet unanimously approved the recommendations of the Trajtenberg Committee on Socioeconomic Change relating to competition and the cost of living on Sunday.

The approval came after the cabinet had discussed the Trajtenberg Committee's recommendations during its past two meetings.

Be the first to know - Join our Facebook page.

Analysis: Trajtenberg: A piece of paper or real social change?
Trajtenberg: Economic woes 'deeper than we thought'

The sections of the report approved by the cabinet on Sunday call for a breaking of fuel monopolies in Israel by the addition of dozens of gas stations and by improving public transportation.

Prime Minister Binyamin Netanyahu said of the approval, "We are systematically moving forward with the approval of the Trajtenberg Report in order to decrease the cost of living."

Netanyahu added: "We are decreasing the powers of monopolies and bureaucracy. The government monopoly is the biggest of them all and will also be dealt with."

Finance Minister Yuval Steinitz responded to the approval of the measures, saying "the passage of the sections on competition and re-organization signifies are insistence on lowering the cost of living for citizens by creating competition in the private sector and in public areas such as: public transportation, fuel, cement for building and re-organizing sea ports."

He added: "This is a historic step for the good of the Israeli economy and Israel's citizens."

The Knesset passed its first law based on the Trajtenberg Committee's recommendations earlier this month. “The Bill to Change the Tax Burden” passed its final reading with 40 MKs in favor and none opposed to the measure, which marked a change in the tax code emphasizing benefits for the middle class. The bill combined a government-proposed bill based on Trajtenberg’s findings with initiatives by Knesset Finance Committee Chairman Moshe Gafni (United Torah Judaism).

Two weeks ago, the cabinet passed a clause raising by 20 percent the maximum internet purchase that allows a buyer exemption from import tax to NIS 1200. The clause did not require Knesset approval and went immediately into effect.

However, other recommendations from the Trajtenberg report have struggled to pass committee.

The formation of the Trajtenberg Committee was spurred by this summer's tent protests which decried the lack of affordable housing in Israel, yet the committee's recommendations on the subject of housing “remain nothing more than ink on paper,” Knesset Economics Committee chairman Carmel Shama-Hacohen (Likud) said last week.

Lahav Harkov contributed to this report.

Related Content

Prime Minister Benjamin Netanyahu
August 31, 2014
Prime minister to Channel 1: I’ll be running again in next election

By Gil Stern Stern HOFFMAN