Municipal taxes paid by the Dead Sea Works, which until now were transferred exclusively to Tamar Regional Council, will from now on also be divided among nine other councils in the south of the country, following a decision signed by Interior Minister Ayelet Shaked.
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The sum to be divided is about NIS 32 million per year. The councils to profit from the redistribution, besides Tamar Regional Council, are: Arad, Dimona, Yeruham, Kuseife, Ar'ara baNegev, Neve Midbar, Al-Kasom, Ramat Negev, and Central Arava.
Tamar Regional Council is considered the strongest regional council in Israel. It will continue to receive a sum totaling NIS 30 million from the municipal taxes paid by the Dead Sea Works. In addition, it will receive 5% out of the rest of the sum to be divided among the councils, which totals about NIS 32 million.
The mandate to redistribute the tax profits was granted to the Geographic Committee – South in 2018. While drawing up recommendations, the committee took into account different criteria such as periphery status indexes, collection rates, the financial resilience index, the council's socioeconomic status, the number of residents, and more.
The percentages of the profits to be received by each settlement, according to the document signed by the Interior Minister on the recommendation of the Ministry's director general, are as follows:
- Arad – 13.5%
- Dimona – 16%
- Yeruham – 12.2%
- Kuseife – 11.9%
- Ar'ara BaNegev – 12.2%
- Neve Midbar – 7.5%
- Al Kasom – 7.8%
- Ramat Negev – 10.4%
- Central Arava – 8.5%
It should be noted that the decision is pending approval by Finance Minister Avigdor Lieberman.
Benny Biton, Mayor of Dimona, Chairman of the Negev Development Authority, and Chairman of the Development Towns Forum at the Federation of Local Authorities: "The date November 10, 2021 is a historic day for residents of the Negev, after Interior Minister Ayelet Shaked took a preliminary decision that a sum of NIS 32 million from the municipal tax collected by Tamar Regional Council each year (about NIS 320 million), which is about 10% of the total tax collected, will be transferred to Negev councils such as Arad, Yeruham, the Bedouin settlements, and more.
"This is a historic decision made by the minister, which many of her predecessors in the ministry were unable to make since they did not see the big picture. This is the right, just, and moral decision, which denies a council with 1,300 residents the privilege to enjoy a sum of NIS 320 million per year in municipal taxes while other councils in the area are straining under the burden of their deficits."
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Minister of Interior Ayelet Shaked: "This is great news for the residents of the Negev. From now on, many councils will receive a significant addition to their income. That money will help to reduce gaps and assist councils in providing better service to their residents."
Director-General of the Interior Ministry Yair Hirsch: "The Dead Sea is a natural resource of the State of Israel, and as many Israeli citizens as possible should enjoy the profits it generates. This is one of the largest redistribution initiatives taken as part of the Ministry's Geographic Committees, and I'm sure it will contribute to the councils' stability and even to their development and growth."
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