In a preliminary reading of the bill proposed by Chairman of the Finance Committee MK Moshe Gafni, the Knesset unanimously approved freezing the municipal tax rate increase on January 1, 2025. It was originally set to rise by 5.3%, reaching a 17-year high.
The bill proposes to sever the artificial linkage of the municipal tax rate to the rate of wage increases in the public sector, which has risen significantly this year. This action will alleviate the burden on households, particularly those in the middle-class and lower-income brackets, and on business owners.
MK Gafni also proposed compensating local authorities for the freeze.