Today (Thursday), the Knesset plenum passed the economic wartime aid plan in the first of three votes. MKs supported the plan without opposition, and it will be sent to the Knesset Committee, which will decide which committee will prepare the proposal for the second and third votes.
The law proposal proposes an aid outline for small and medium businesses, participating in their regular expenses vis-à-vis some of their pay expenses, which will serve as overall aid for businesses suffering losses due to the war. The proposed model, based on amendments to the Property Tax Law, is primarily based on the model of past compensation given during wartime according to the Property Tax Law and grants provided during the spread of the coronavirus.
Accordingly, a business that has suffered significant losses from the war and its effects on the civilian rear, will be entitled to compensation adapted to their rate of loss, calculated according to their loss of cyclical revenue, regular expenses, and wage costs.
The explanatory preamble to the proposal states that “in the wake of the ongoing wartime actions as part of the Swords of Iron War, the orderly economic activity of some businesses has been harmed for an extended period, and this due to the limitations and instructions of Rear Command, the closure of the education system, and the enlistment of hundreds of thousands into the reserves. Consequently, there are businesses which experiences cyclical declines as part of the coping with the unique situation in the rear in the month of October 2023.”
“The government is acting in a variety of ways to aid residents affected by the fighting directly and indirectly. Among others, it is proposed to amend the Property Tax Law and the compensation fund and establish an aid outline for small and medium businesses for participating in their regular costs as well as some of the wage costs. It is also proposed to amend the National Insurance Law such that from the 22nd of Tishrei (October 7, 2023) to the 17th of Kislev (November 30, 2023), adjustments be determined for the sake of providing relief and benefits regarding the receipt of unemployment compensation for workers whose employment was ended in the wake of the Swords of Iron War.”
