PM Netanyahu
Photo: Alex Kolomoisky
MKs move ahead with some tax exemptions for PM’s private residence
Bill for state funds to be used on benefits, expenses incurred at PM’s private residence—which relate to fulfilment of his professional duties—clears first hurdle in Knesset preliminary reading; bill’s sponsor says move ‘fair’ while opposition MK describes it as ‘Chutzpah.’
The Knesset approved Wednesday afternoon in a preliminary reading a bill proposal to amend Income Tax Ordinance rules that would provide tax exemption for payments and services provided to the prime minister, and for work-related expenses incurred in his private residence in Caesarea.
If the bill clears all readings, approximately NIS 8,000 shekels would be added to Netanyahu’s net monthly income, with an expected NIS 3,000 going on his vehicle and NIS 5,000 on his residence’s expenses.
Fifty MKs supported the bill while 38 opposed it, before it was transferred to the Finance Committee in preparation for the first Knesset reading. A discussion on the matter will take place in the next week and a half.
According to the bill, which is being sponsored by MK Miki Zohar (Likud), Prime Minister Benjamin Netanyahu will be exempt from paying taxes on all payments and services and benefits provided by the State Treasury which relate to fulfilment of his professional duties. The state president already receives such exemptions.
If implemented, the bill would mean exemptions from taxes for the prime minister’s armored vehicle. Moreover, state finances would be used to fund expenses incurred at Netanyahu’s private residence in north Israel if they relate to work.
PM Netanyahu's private residence (Photo: Shaul Golan)
If the bill clears all readings, approximately NIS 8,000 shekels would be added to Netanyahu’s net monthly income, with an expected NIS 3,000 going on his vehicle and NIS 5,000 on his residence’s expenses.
“Income Tax Ordinance provides a tax exemption for payments, services and benefits paid or provided by the State Treasury to the state president in relation to the fulfilment of his duties as president,” an explanatory note of the bill states.
MK Miki Zohar (Photo: Ohad Zwigenberg)
“It is being recommended that a similar exemption also be provided for payments for the prime minister as they relate to the fulfilment of his duties,” it adds.
Speaking in the Knesset plenary session, MK Zohar said that he had crafted the bill after learning that the prime minister makes a monthly salary of NIS 13,000 ($3,600 approx.)
“Is it right or reasonable that the prime minister of Israel should earn NIS 13,000? This is, first and foremost, a moral question, with no connection to the identity of the prime minister. No one in this country wants the prime minister to earn a salary that does not respect the post or the status,” he explained.
PM Netanyahu (Photo: Alex Kolomoisky)
“I am not trying to help the prime minister, but rather to help the state to be fair toward its prime minister,” Zohar argued. “In one day when the prime minister was giving lectures around the world he could earn a very high sum of money, but he doesn’t do that because all his work goes into improving the state. Is it right that he is also asked to pay for all expenses incurred at his private residence? The populism should be put to the side.”
However, Yesh Atid MK Mickey Levy, who opposed the bill, said that the initiative could be summarized in one words: “Chutzpah,” the Yiddish word for audacious.
“It’s a loss of values. It is not relevant whether the prime minister is a well-off or poor man. We are talking about a fundamental point. To come and ask that the State Treasury participates in his Caesarea villa? For the water in his villa swimming pool? And for the ongoing maintenance of his private home? Have you gone crazy?” Levy vented.
“You are dipping your hand into the public coffers. Have you lost all sense of shame? I, as a member of the public, should not have to maintain a villa in Caesarea,” the MK forcefully insisted.
