Manufacturers Association of Israel says that enterprises paid NIS 2 billion in arnona (local property tax) in 2008, but received only poor to middling quality service in exchange. The figure is based on a survey of more than 70 factories based at industrial parks nationwide.
The Manufacturers Association calls on the Ministry of the Interior to legally mandate local authorities to provide factories with the basic services that they are paying for.
On a scale of 1-5, local authorities scored 2.9 in 2008, up slightly from 2.59 in 2007. The Manufacturers Association's survey found that 21% of factories had received demands from local authorities in 2008 for retroactive arnona payments and fees.
The Manufacturers Association said that, for years, local authorities had sought to increase arnona paid by factories retroactively, by sending inspectors to measure factories' area, local authorities were now extending this practice to demand retroactive fees and other charges.
Published by Globes [online], Israel business news - www.globes-online.com - on February 8, 2009
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