Advanced training fund taxation remains in budget

Today (Wednesday), the Ministry of Finance published the 2025 budget proposal, which will be presented tomorrow for approval by the government. The government spending framework (including repayment of government debt) amounts to NIS 744 billion, an increase of NIS 17 billion compared to the 2024 budget.

After paying off the NIS 161 billion debt next year, the government spending framework will be NIS 583 billion. This is roughly the same as the 2024 budget framework, and even slightly lower, since the government recently violated the 2024 budget framework by nearly NIS 3 billion to fund the continued provision of housing for residents of northern Israel displaced by the war.

A comparison with the previous draft budget shows that at least one of the measures proposed by the Ministry of Finance, namely changing the way real estate is measured for purposes of arnona (local property tax), which would have sharply raised arnona payments in major cities, was dropped. On the other hand, reducing tax benefits on advanced training funds is still in the Finance Ministry’s plans at the moment, although it is estimated that it will eventually be dropped, after the meeting between Finance Minister Bezalel Smotrich and the Histadrut (General Labor Union). Labor Party of Israel) Chairman Arnon Bar-David ended inconclusively.

Under the budget proposal, the Defense Ministry’s budget would be NIS 102 billion, more than the budget of any other ministry. The proposal does not yet include the recommendations of the Nagel Commission to review the defense budget, which could lead to it rising further.

Published by Globes, Israel Business News – en.globes.co.il – on October 30, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.