Finance Minister Avigdor Lieberman on Monday unveiled his outline to help small and medium-sized businesses, with an annual revenue cycle of up to NIS 60 million ($18.5 million), affected by the COVID pandemic.
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"This is a responsible and fair" plan, Lieberman said at a meeting of his Israel Beytenu party, "which correlates with the country's capabilities."
According to the outline, businesses that prove significant annual revenue losses of at least 35% in January-February 2022 compared to the same months in 2019 (before the pandemic began), will be eligible to receive up to NIS 600,000 ($185,000). The aid package will be given in one installment and include, among other benefits, hiring incentives and a property tax exemption.
"The implementation of this outline without bureaucracy will allow for the delivery of help and oxygen to businesses that were significantly hurt," the finance minister said.
It should be noted that this is a less generous package than those provided in earlier waves of the pandemic, which granted aid to businesses with annual revenue cycle losses of 25% and up. However, the country's economic situation was different, as the Israeli economy during the current Omicron wave is far less restricted than it was during earlier waves.
"The revenues from value-added tax in February was around 8.5 billion shekels ($262.6 million), an increase of more than 27% compared to February 2019, the year before the outbreak of the pandemic," Lieberman said. "The economy is doing well, and we should keep doing what we're doing."
Owners of banquet and event halls, whose businesses were the hardest hit by the pandemic due to cancellations, welcomed the outline but voiced reservations.
Aviram Alon, the director of the Association of Owners of Banquet and Event Halls, said, "The proposed compensation is important, but it's only a band-aid, and the industry's specific problems need to be addressed and additional compensation mechanisms have to be examined for its rehabilitation."
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