Knesset members approved in the final reading the chapter on financing the construction of the Gush Dan Metro within the framework of the previously approved Metro Law.
According to the approved chapter, development companies will have to pay 72% of the increase in the value of land plots along the metro route. These funds will be distributed between the state and the municipality in whose territory the land plot is located.
Due to the fact that the construction of the metro has not yet entered the active phase, it was decided that until 2030 it will be possible to pay the tax at a reduced rate of 60%.
Another tax, amounting to NIS 4.5 billion, will be imposed on Gush Dan municipalities and will be collected according to the number of stations in the municipality’s territory.
Businesses in the area of future metro stations with a business area exceeding 100 square meters will have to pay a special tax of 70 shekels per square meter.
According to the current estimate, the total amount of taxes to finance the construction of the metro will be 75 billion shekels, which is about half of the estimated cost of the entire project. The other half is planned to be taken from the state budget. At the same time, experts believe that the estimate of the cost of the metro is underestimated by 40%.