The Director General of the National Civil Service Authority, Minister Shalom Jarbi, appealed to the Director General of the Ministry of Finance demanding that "National Civil Service volunteers also be included in the 0% VAT benefit for purchasing an apartment," after it became clear that "the Ministry of Finance omitted the ultra-Orthodox volunteers and the young men who received an exemption from the IDF from receiving the benefit." Jarbi added: "It is impossible for these volunteers not to be eligible for the benefit. The Ministry of Finance must correct the decision.".
The legal memorandum regarding zero VAT for apartment buyers, which was distributed late last week by the Ministry of Finance, includes a definition of "beneficial purchaser," which states that military and national service graduates will be entitled to a 0% VAT benefit on the first apartment they purchase.
However, Jarbi checked and found that the above wording does not include ultra-Orthodox volunteers, nor those who received an exemption from the IDF and volunteered for national-civilian service, because the criteria for receiving the benefit according to the proposal are: a minimum of 18 months of service for men, and 12 months for women.
This stipulation of a minimum of 18 months of service for men instead of 12 months of service is problematic both for ultra-Orthodox servicemen who completed 12 months of civilian service, in accordance with the length of service that was set by law before the approval of the new Equal Burden Law, and for men who received an exemption from the IDF and volunteer for national service for 12 months or more (non-ultra-Orthodox, those receiving an exemption for medical and other reasons). In light of this, many volunteers may 'fall through the cracks' and not be eligible for the benefit, due to incorrect wording that does not match the definitions of national-civilian service for each of the sectors volunteering in it.
Following this, Jarbi contacted the Director General of the Ministry of Finance, Yael Andoren, with a request to correct this discrimination, and to include also the ultra-Orthodox servicemen and the young men who were exempted from service in the IDF and volunteered for national service.
In his letter, Jarbi noted: "Nearly 17,000 national-civilian service volunteers from all sectors make a significant contribution of their time and energy over a year or two to the State of Israel in a variety of fields, and they should be thanked for this. It is impossible that these volunteers will not also be entitled, after their service, to the same benefits granted to military service graduates when they purchase their first apartment.".
Jarbi added: "I am confident that the issue of national-civilian service is close to your heart, and therefore I am appealing to you to change your decision, so that all graduates of national-civilian service will be included in the group eligible for relief in purchasing their first apartment.".