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NEWS
Building Contractors Accuse State of Taxing Apartment
Buyers Excessively
By G. Kleiman
A comprehensive study commissioned by the Contractors Union
of Israel shows that of every shekel spent on buying an
apartment in Israel, 41 agorot (41 percent) goes to the State
in the form of various hidden taxes and charges.
According to the study, the State collects an average of NIS
320,000 ($145,000) on every new apartment purchase.
Contractors Union President Shmuel Olpiner says, "The high
taxes are the main reason for high apartment prices, which
eventually led to a prolonged recession in the construction
industry in Israel. This situation deprives young couples and
their parents most since married couples in Israel are forced
to pay a `fine' to the State for deciding to build a
family."
Olpiner claims there is no precedent anywhere in the world
for the high taxes on new apartments, which include 15
percent VAT, a 6 percent Israel Lands Authority tax, a 2
percent improvement tax, a 2 percent acquisition tax, 2
percent for construction fees and development charges and a
recently-levied 3 percent tax for foreign-worker wages.
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