Will tourism in Eilat be saved? The new grant to which the city's businesses are entitled during the war

Businesses in Eilat and localities throughout the country that are included in the definition of "areas affected in the month of December", yesterday (Tuesday) entered the list of eligibility to submit an online application for a grant from the Tax Authority, for the indirect damage caused to them as a result of the war in the months of January-February 2024.

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Yesterday, the compensation fund opened the possibility of submitting grant applications for January-February, for businesses in tourist-oriented settlements and settlements for which strict restrictions apply, as well as the possibility of requesting advances for March-April for businesses in Safar settlements in the south and north that have been evacuated.

Finance Minister Bezalel Smotrich said after the government's decision on the matter was made: "An important decision for tourism in Eilat and the Tamar Regional Council. Eilat has always been dear to my heart and in all my years in the Knesset I fought to make sure that Eilat would continue to be a leading tourist city. The compensation outline we approved for the beginning of 2024 will help business owners and the tourism industry Also at the beginning of this year. The Tax Authority, the Ministry of Finance and the Government of Israel are working to provide maximum coverage for all populations and sectors."

According to the law, business owners in Safar settlements who suffered economic damage due to war can claim full compensation for the economic damage caused to them – indirect damage. More often than not, these businesses are forced to wait until the end of the fighting in order to be able to assess the full damage caused to them and claim compensation. Out of a desire to assist these business owners in dealing with the current crisis, the compensation fund at the Tax Authority allows those businesses in Safar settlements, in the south and north of the country, to notify of damage and request an advance before filing a claim.

Only businesses opened before September 30, 2023 are eligible for the grant. The threshold conditions for receiving compensation are a turnover of NIS 12,000 to NIS 400 million and a decrease of at least 25% in transaction turnover between the months of January-February 2023 and the months of January-February 2024.

At the same time, the compensation fund was opened for the benefit of business owners in Safar settlements in the south and the north who have cleared the possibility to apply for an advance payment for compensation for the indirect damage caused to them due to the Iron Swords War also for the months of March-April 2024.

Business owners in Safar settlements in the south and north of the country, who were evacuated according to government decisions and Safar settlements in the conflict line area, in accordance with the defense instructions of the Home Front Command and the movement instructions of the Northern Command, and who suffered indirect damage due to the war and meet the eligibility conditions for payment of compensation according to the property tax regulations, are entitled to the advance payment cease of action. A complete list of the localities that qualify for the advance appears on the Tax Authority's website.