Finance Minister Yair Lapid today announced his plan to make housing cheaper and more affordable for young couples.. Lapid's plan consists of lowering the VAT on the first apartment purchase of a young couple - lowering it all the way down to 0% (from 18%), effectively giving young couples an 18% discount.
The qualifications for this discount would be that:
1. it applies only when buying a new apartment direct from the kablan
2. at least one spouse in the marriage has served n the IDF
3. the married couple has at least one child
4. they will not be allowed to sell the apartment for a minimum of 5 years
while one might say this plan is clearly prejudiced against the haredi community, considering the recently passed draft law that will theoretically increase the draft in the haredi community, it might not actually be so. Possibly, Lapid's plan is partially to encourage, using the carrot this time, more haredim to willingly be drafted - 18% is a lot of money to save.
Housing Minister Uri Ariel says this project will not withstand the test of the Supreme Court and will be canceled for being discriminatory. Ariel wants the program expanded to include haredim and couples with no children, as well as not just limiting it to first-apartment-purchases.. Ariel says this is what will truly affect housing prices, and not just the first purchase which is only 8% of the home purchases.