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Israeli Economy Struggles: New Tax Measures to Support War Effort

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The Israeli economy faces a recession due to the Gaza conflict. New tax measures, including the deduction of recovery days, aim to support reserve soldiers but have sparked public debate.


Impact of Israeli Aggression on Gaza on the Economy

The Israeli economy is grappling with the aftermath of the aggression against the Gaza Strip that began approximately nine months ago. This military conflict has led to significant economic challenges, including a looming recession. The mobilization of a large portion of Israeli workers into the military and the subsequent payment of monthly salaries to these soldiers have created a substantial financial gap. In response, the Israeli Ministry of Finance has implemented various measures to address this economic deterioration.

New Financial Measures and Public Reaction

One of the key decisions by the Ministry of Finance is to deduct one day of recovery from every citizen and settler in Israel. This deduction, which began in June, amounts to 418 shekels ($111) in the private sector and 471 shekels ($125) per day in the public sector. This measure aims to redirect funds to pay the salaries of reserve soldiers who have been economically impacted by the war. However, this decision has sparked mixed reactions among the Israeli public.

Noa, a teacher from the Sharon area, expressed her frustration, stating, 'There is no doubt that salaries must be paid to the reserve soldiers who sacrificed and contributed everything they could. However, it is illogical for this to come again from the settlers’ pockets.' Similarly, Rotem Tabib, a technical support worker for computers, acknowledged the frustration but also recognized the necessity, saying, 'If this helps the state, I don’t have much to do. I have no other way to contribute because I am not a reservist, and as an Israeli, I feel proud to be part of the state and to contribute.'

The writer also highlighted the contrasting opinions within the society. Some individuals, like Emma, understand the need to address the financial deficit but strongly oppose the step of taking recovery days from citizens. Emma stated, 'I am with civil conscription. It is clear that we are in a difficult period, and that there are repercussions of the war that is also coming in the form of a financial deficit. There is no doubt that salaries should be paid to the reservists who sacrificed and contributed everything they could, however, it is illogical for this to once again come from the pockets of the settlers.'

The sentiment is echoed by many who believe that the government should find alternative solutions to the financial crisis rather than burdening the middle class, which is already struggling with the high cost of living. The article concludes with Noa emphasizing the need for efficient government leadership, stating, 'If I saw the state working efficiently and with worthy leadership, I would have participated in helping and providing everything necessary.'

  • The Ministry of Finance's decision to deduct one day of recovery from every citizen and settler in Israel has sparked significant debate. While some see it as a necessary step to support reserve soldiers, others view it as an unfair burden on the middle class.
  • The economic impact of the aggression on Gaza has been profound, leading to a recession and a substantial financial gap. The mobilization of Israeli workers into the military and the subsequent payment of their salaries have exacerbated the situation.
  • Public reactions to the new financial measures are mixed. Some individuals understand the necessity but are frustrated by the additional financial burden. Others believe that the government should find alternative solutions to address the financial crisis.
Clam Reports
Refs: | Israel Hayom | Aljazeera |

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