Monday, October 15, 2012
New 10% tax on developers who don’t build fast enough
Beginning three years from the publication of the bill in September, a developer who does not sell the land, but finally begins building on the land will pay a tax on the sale proceeds from the apartments as follows: in the fourth year, a tax rate of 0.5% on the sale proceeds of each apartment; in the fifth year, a tax rate of 3%; and from the fifth year, a tax rate of 6%. Association of Contractors and Builders Association president Nissim Bublil told homebuyers response, "The government today is hitting you with a fine." He added, "The Israeli government continues its campaign of errors on all matters relating to housing solutions. The latest measures by the prime minister and finance minister have only resulted in higher home prices."
Bublil said, "Contractors are not holding land because they want to. Even when there are lots with approved building plans, the road to construction and sales is long and involves obtaining building permits, permits, and restrictions from the planning commissions, a process which can drag out for years. The contractor cannot expedite the process. The moment the government fines contractors, they will pass the cost on to young couples who will pay the price."