Finance Minister Bezalel Smotrich responded Thursday afternoon sharply to criticism that has emerged since yesterday regarding his ministry’s tax benefit policy.
Smotrich rejected claims that he is denying tax benefits to northern border communities in favor of Judea and Samaria, describing those spreading the allegations as “bad people spreading lies."
In his remarks, the minister presented data on the existing tax benefits, noting that Sderot, the Gaza border region, Kiryat Shmona, and Shlomi receive 20% tax benefits, while most communities in Judea and Samaria currently receive 0%.
The minister explained that tax benefits are intended as a tool to encourage people to live in challenging areas, recalling that the Sharon government canceled the benefits for Judea and Samaria in 2003. Now, as part of what he described as a “settlement security revolution" following the lessons of October 7 and aimed at preventing another massacre in central Israel, he seeks to reverse that decision.
He clarified that the government wants to encourage people to live in the area in order to strengthen Israel’s security and remove the idea of a Palestinian state from the national agenda. He added that he chose the minimum rate of 7% for deeper areas of Judea and Samaria in order to avoid personal accusations against him.
Smotrich attacked his critics, saying: “People can argue with me ideologically over whether it is right or wrong to encourage one million residents to move to Judea and Samaria and remove the division of the land and territorial concessions from the agenda. But they cannot brazenly lie the way several local authority heads and left-wing journalists did yesterday, using every means possible to sow division between populations, and above all to harm the right-wing government and the heroic settlers."
He added: “The heroic residents of Judea and Samaria have held onto the homeland for decades with extraordinary courage under extremely challenging security conditions. They serve in reserve duty at the highest rates and, sadly, fill the rows of military cemeteries. They rushed to save their brothers in the kibbutzim on October 7 with self-sacrifice when the army disappeared, and for two and a half years, they have fought devotedly in Lebanon to ensure the security of northern residents. They do not deserve to be attacked with hypocrisy and lies. I am proud to represent them, proud to stand behind the security and settlement revolution we are leading in this term, and above all, I do not intend to apologize for it or surrender to lies and hypocrisy."
Regarding northern Israel, the finance minister detailed that higher tax benefit rates already exist there, and said he agreed במסגרת the legislation to raise the benefit for fence-adjacent communities from 14% to 18% as a symbol of shared destiny. However, he explained that he opposes equalizing all confrontation-line communities at 18% in order to preserve differentiation, arguing that it is harder to live in communities such as Shtula, Zar’it, Manara, or Rosh Hanikra than in towns farther from the border.
Smotrich stressed that even after the new legislation, northern communities will still enjoy tax benefits two to three times higher than those in Judea and Samaria. He expressed disappointment that northern local authority heads were, in his words, trying to harm settlers and using them as “hostages."
“One can agree with me or disagree with me, but to lie and claim that northern communities have no tax benefits and that I refuse to give them any while giving benefits only to the residents of Judea and Samaria is a gross and despicable lie. Even after the new legislation, northern communities will continue receiving between two and three times the tax benefits given in Judea and Samaria," he wrote.
He continued: “It truly saddens me that the incredible solidarity shown by the residents and local authority heads of Judea and Samaria throughout the war toward their brothers in the south and north, and toward their fellow local leaders there, is not met with reciprocity and support from northern local leaders toward the residents of Judea and Samaria. It saddens me that there are those trying to harm the settlers and prevent tax benefits for Judea and Samaria while taking them hostage in order to increase benefits for the north. I have never acted that way and never will. I will not take part in stirring conflict between populations or harming one group in order to advance the interests of another part of my beloved people. That is not my way and those are not my values. I hope and pray that the northern local authority heads will engage in soul-searching and repent."
In conclusion, Smotrich highlighted his actions as finance minister on behalf of all Israeli citizens over the past three and a half years, including funding for evacuees, rehabilitation efforts in the Gaza border region and the north, compensation packages for businesses, and multi-year development plans for Druze communities and Galilee cities.
He also noted new tax benefit legislation for Ashkelon and Nof HaGalil, and declared that he is proud to correct what he called a longstanding injustice in Judea and Samaria. The minister concluded by saying that his Zionism does not recognize green lines or artificial borders, and that his love for the Jewish people does not distinguish between different regions of the country.
“I am also proud to correct a longstanding injustice and restore tax benefits to the heroes of settlement in Judea and Samaria. Simply because, for me, Zionism does not recognize green lines and artificial borders, and love of the people does not distinguish between residents of the center and the periphery, the city and the countryside, the south, the north, or Judea and Samaria. I will continue this without fear and without surrendering to lies and incitement. Simply because I have no other country," he concluded.