Tel Aviv grants insurance companies a tax break

The city of Tel Aviv has decided to give a 20% discount on municipal taxes to insurance companies.

By MIRIAM BULWAR DAVID-HAY
November 1, 2007 11:02
1 minute read.
currency 88 shekel

currency 88 shekel. (photo credit: )

 
X

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 experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • 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 city of Tel Aviv has decided to give a 20 percent discount on municipal taxes to insurance companies - a move that will cost it about NIS 5.4 million per year, reports the Hebrew weekly Yediot Tel Aviv. The decision is arousing controversy, with critics saying that insurance companies make "millions" and can afford the taxes, and that residents are carrying the burden for the city's "winking" at large companies. According to the report, the city's Financial Committee, headed by Mayor Ron Huldai, decided to award the discount to prevent the companies from leaving Tel Aviv for cheaper cities. Some 96 insurance companies operate in the city, paying NIS 463 per square meter each year. Huldai said he suggested lowering this rate by 20% to NIS 371 per square meter to keep them in the city. But when questioned by councilor Mordechai Virshuvsky whether he knew for sure that this would prevent the companies from leaving, Huldai admitted that no investigation into the subject had been carried out. Virshuvsky said the city had first given discounts to banks and now was doing the same for insurance companies, which were hugely profitable and could afford to pay the full amount. "The message we are giving to residents in this process is terrible," Virshuvsky said. "Whoever has funds and is valued by us gets a discount, but the small citizen who has nothing has to continue paying the full price." A municipal spokesman responded that municipal tax rates were decided in relation to other cities and as part of municipal strategies, and this was how the insurance companies' tax rates had been fixed.

Related Content

JERUSALEM: RESETTLED upon its desolation
December 19, 2010
Vying for control of the Temple Mount – on Foursquare

By SHARON UDASIN