The Knesset changes the law because Bituach Leumi computers cannot count thousandths of percent.

In March 2024, Knesset members approved a decision to increase the health care tax from 2025. The tax increase is intended to finance the expansion of the system of psychological assistance and mental health, which for a long time remained on the margins of the interests of the Ministry of Health.

Initially, the Ministry of Finance proposed to increase everyone’s tax by 0.15%, but members of the commission made a change, increasing the tax by 0.135% for those earning up to 7,555 shekels per month, and by 0.165% for every shekel above this amount.

Thus, the lower level of the health care tax should be 3.235%, and the upper level – 5.165%.

However, towards the end of 2024, it became clear that the computer systems of the National Insurance Institute cannot work with thousandths of percent (the third decimal place), and making changes to the existing system threatens to result in greater problems than changing the law.

As a result, a bill was submitted to the Knesset that would round up tax rates to 3.23% and 5.17%, respectively.

Let us recall that the project to create a new computer system for Bituach Leumi has repeatedly attracted the attention of the media and the state controller due to being behind schedule and exceeding estimates.