The new law also includes reducing betterment levies in retail spaces from 75% to 60% by the end of 2030, eliminating the “metro tax” for small business owners along the route and beyond. According to Ministry of Finance estimates, the project is expected to generate about NIS 30 billion annually for the economy
By Nimrod Buso, Nadlan Center
The Tel Aviv metro project includes three lines, 150 km of underground tracks, and 109 stations. The metro network is expected to connect 24 local authorities throughout the Dan region and carry about 2 million passengers daily. According to Ministry of Finance estimates, the economic benefits resulting from the project’s construction are estimated at NIS 30 billion a year, including a significant improvement in accessibility to employment and commercial centers, a reduction in the use of private vehicles, and time savings.
Tonight, the Knesset plenum (Wednesday-Thursday) gave final approval in its second and third readings to the law regulating the construction of the largest transportation project in the state’s history – the construction of the Gush Dan metro. This is the second law (“Metro 2”) that complements the legislative processes that began under the previous government, and its purpose is to enable rapid advancement of the project while removing regulatory and bureaucratic barriers and determining the funding sources for its construction.
The Metro Law passed its first reading in the previous Knesset, but the legislative proceedings were not completed due to its dispersal. The law was opened for reconsideration in the current Knesset by the Interior and Environmental Protection Committee, headed by MK Yaakov Asher, who, alongside the committee’s deliberations, held many meetings with the parties involved to resolve several disputes underlying the law.
The main one, which is also the main legislative change relative to the previous version of the law, stipulates a reduction in the metro improvement tax from 75% to 72% permanently, and in addition, to incentivize development along the route, states that developers who submit plans for a permit by December 31, 2030, will benefit from a reduction in the metro tax to 60%, with the Minister of Finance able to extend the time by another two years.
Another significant amendment not in the previous law completely exempts public institutions and small and medium-sized businesses whose area does not exceed 100 square meters from the metro financing levy tax. The law also includes a compensation package of half a billion shekels to compensate businesses along the metro route whose business activity will be harmed during construction.
The law also includes the establishment of a regulatory council that will coordinate between the executing company and other infrastructure bodies in all matters related to promoting the project and limiting the authority of the Committe for National Infrastructures to plan uses that deviate from the planning of the infrastructure itself. It was also determined that under no circumstances could the executing company carry out rehabilitation or development work at a level lower than the accepted level in the area to prevent discrimination between the authorities.
The law also restricts the noise thresholds permitted during the work’s execution. This will require project managers to use more advanced and quieter equipment, establish acoustic protection at the work sites, or finance acoustic insulation and air conditioning in buildings adjacent to the work sites to reduce the harm to residents living along the route.
News for the State of Israel and especially for the residents of Gush Dan
MK Yaakov Asher, Chairman of the Interior and Environmental Protection Committee: “As a former mayor of Gush Dan, I know the critical importance of the mass transit system in the Gush Dan region, which will radically change the transportation behavior in the area, and will also contribute to accelerating construction in the complexes near the metro stations. This is the largest transportation project approved to date. I am pleased that after many discussions and amendments, we have incorporated into the legislation, especially regarding the betterment tax and the state’s obligation to compensate business owners in compounds adjacent to the route, we can welcome the completion.”
“There is no dispute that the law came out differently from how it came to the committee, and as I said in the committee: Now that we have built the legal platform and the appropriate arrangements for it, it is the duty of the state to ensure that the project is accelerated and completed as quickly as possible, and without delays between government ministries while causing as little damage as possible to the adjacent compounds. I thank Finance Minister Bezalel Smotrich and Transportation Minister Miri Regev for their cooperation and understanding of the necessary changes, and today’s news came out to the citizens of the State of Israel in general and to the residents of the Dan region in particular.”
Finance Minister Bezalel Smotrich said, “The approval of the Metro Law is an important step for the State of Israel. With the approval of the Metro Law and the assistance package for business owners located near the works and construction sites of the metro, at a sum of half a billion shekels, we are today taking a tremendous step to strengthen the transportation system in Israel—a move that will support and strengthen the Israeli economy. I thank all the partners who helped pass the law.”
Budget Commissioner Yogev Gradus said, “The State of Israel is facing a severe infrastructure deficit. The main reason for this today is the slow execution of essential projects. The metro project is the largest infrastructure project ever carried out in Israel. Metro Law creates the regulatory and structural framework that will enable its construction to be as efficient and quick as possible to benefit the country’s residents. Especially during this period, promoting economic projects that will increase growth is vitally essential. I thank everyone who formulated and promoted the law in recent years.”
