Search
Close this search box.

To What Extent Do We Go to Collect Israel’s IBA Tax?


taxIt was a stormy session in the Knesset Finance Committee as they discussed to what extent the state-run Israel Broadcasting Authority (IBA) goes to collect its TV tax. In essence, the state-run propaganda station has no need to provide wanted quality programming content for its survives on the purse strings of taxpayers who pay an annual tax to keep the unwanted station operational. A growing number of Israelis from all walks of life have called to shut it down, pointing out that with cable and satellite television, IBA is an unwanted expense. Nevertheless, lawmakers have yet to do so compelling taxpayers to keep funding the operation.

Deputy Director of Collection in IBA Avi Katz elicited the anger of many committee members when they realized he receives 800 million NIS annually from the TV tax. Of 1.45 homes billed for the tax, IBA uses attorneys and collection agencies against 1.2 million of them. Simply stated, most Israelis are fed up and don’t pay the tax voluntarily.

Lawyers located 600,000 households, of which there were 140,000 new household the collected from about 50,000 of them. Judicial action is pending against 112,000 household for failure to pay.

Attorneys were selected in a tender in 2011, paying them a commission they did not exceed 7%. In 2011, 5 million NIS was paid in commissions, and that number was 6 million in 2012. Attorneys received 30 million NIS in fees in 2013, with Katz explaining the IBA lacks the manpower to rely on in-house collection, compelling the agency to turn to attorneys.

Committee Chairman Nissim Slomiansky responded saying “These findings are scandalous. The conduct of this public body is inappropriate for taking such harsh actions against debtors for the IBA is funded by taxpayers in any event. The ongoing collection is delusional!”

Slomiansky pointed out that the agency spent 30 million NIS to collect 11 million NIS, seeking to understanding the wisdom of the process. “You could have hired 300 employees and even if they were not so busy they would get the same job done at a far less costly price.”

The argument and dollars and cents comments did nothing to persuade Katz that his agency is operating in an inappropriate and costly fashion. MK (Likud/ Beitenu) Hamad Amar said that despite being a staunch supporter of the state-run TV, now that he understands what is going on, he votes for shutting down the entire operation.

(YWN – Israel Desk, Jerusalem)



Leave a Reply


Popular Posts