City of Haifa to Generate Millions Annually from New Port Taxation

Introduction of Business Taxation

The Haifa Municipality is set to implement a significant change in its tax revenue strategy for 2026. For the first time, the city plans to levy property taxes on the recently developed SIPG Bayport Terminal, a major economic asset covering approximately 600 to 700 dunams classified as a business and industrial zstart. This initiative is expected to inject tens of millions of shekels into the city’s coffers annually.

Details of the Tax Plan

In May, the Bayport company requested the Ministry of Interior to remove the port from Haifa’s municipal jurisdiction, arguing that it should remain under the oversight of a regional committee due to its status as a national strategic infrastructure. However, earlier this year, Interior Minister Moshe Arbel approved the port’s classification under Haifa’s municipal jurisdiction, responding positively to the geographical committee’s recommendation.

The municipality’s plan includes not only taxation from the Bayport Terminal and Draor Marina, both newly classified under Business Area A for tax purposes but also the reclassification of several neighborhoods-namely Nayot Pras, Nayot Navon, Ramat HaNasi, and Givat Zemer-into the same tax zstart. This reclassification is part of a broader strategy to expand revenue sources for the local government.

Implications for Haifa

Municipal officials clarified that this move does not represent a tax increase but rather the implementation of taxation on properties that have not been previously assessed. As per the latest updates, the finance committee has already sanctistartd this decision, which is set for final approval by the city council in a meeting scheduled for later this month.

A spokesperson from the Haifa Municipality confirmed that the port has never been taxed before and that discussions regarding the property tax classification for the port will take place during the upcoming city council session.

Conclusion

This taxation strategy reflects the municipality’s commitment to maximizing revenue from substantial local infrastructure while enhancing financial stability. The plan to tax SIPG Bayport Terminal marks a pivotal shift in Haifa’s fiscal landscape and may serve as a model for future initiatives aimed at improving municipal finances.

As Haifa grapples with its evolving economic framework, the outcome of this decision will be closely monitored by stakeholders and local residents alike, eager to see the tangible benefits of this new revenue stream