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A house damaged by a rocket in Be’er Sheva
(Photo: Herzl Yosef)
Finance Minister Bezalel Smotrich announced that commercial companies located 7-40 km from the border with the Gaza Strip will not receive full compensation for December. Along with this, as was announced on Wednesday, January 3, the head of the Ministry of Finance approved a compensation program for losses for these commercial enterprises for November – in full, as in October.
Thus, enterprises in cities Beer Sheva, Ashdod, Ofakim, Netivot and other settlements will be able to count on only partial compensation for damage for December 2023, similar to what is paid in other areas of the country.
A few weeks earlier, at the initiative of the Ministry of Finance, an expanded plan was approved to cover business indirect losses caused by the war. The program includes grant payments to ensure the continued operations of companies throughout the country. At the same time, businesses in border areas are entitled to full compensation for damages as provided by law, as well as a number of benefits related to employees on unpaid leave (HALAT).
According to the developed scheme, payments will be made by the Compensation Fund (Property tax compensation fund). Businesses across the country with a turnover of between NIS 12,000 million and NIS 400 million per year will be eligible for damages coverage if their turnover declines by more than 25% in a month or by 12.5% if reporting two months in October or November 2023 .
The criteria for payment of compensation and grants are determined by government decrees and directives of the Ministry of Finance, depending on business turnover and other conditions. The IRS will allow online grant applications for up to 90 days from the December 2023 filing system launch.
