Kiryat Shmona petitions High Court against government and Tax Authority: "For us, the war is not over"
The Kiryat Shmona municipality has petitioned the High Court of Justice against the government and the Tax Authority, demanding an extension of the compensation period for businesses affected by the war. The municipality argues that the February 2025 deadline does not reflect the ongoing damage. Out of about 350 businesses, 54 have gone bankrupt, and transaction turnover has dropped by 189 million shekels.
The Kiryat Shmona municipality filed a petition to the High Court of Justice against the government and the Tax Authority, demanding an extension of the recognition period for indirect damage to the city's businesses following the Iron Swords war. The municipality claims that the state arbitrarily set February 28, 2025 as the end date for compensation, even though the economic damage continues. Of about 350 businesses operating before the war, 54 have gone bankrupt. Transaction turnover fell from 778 million shekels to 589 million shekels, and VAT collection dropped from 23 million to 12 million shekels. The rate of returning residents stands at only 55% to 76%. The municipality seeks recognition of damage from October 7, 2023 until the city returns to its pre-war state. The state was required to respond to the petition by January. The article notes that Mayor Avichai Stern, who previously criticized the government, joined Prime Minister Benjamin Netanyahu's campaign before the elections, and now his city is waging a legal battle against that same government.