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Finance Minister Proposes 30% Tax on Bank Profits

12/26/2025

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Summary

Story summary

Finance Minister Bezalel Smotrich proposed doubling the tax on banks' profits to 30% if they cancel customer benefits.
His proposal was a 15% tax on profits above the 2018–2022 average.
Smotrich argued banks should share profits with the public because rising rates benefited banks during the war with Hamas.
The Association of Banks opposes the tax, saying it burdens the public.
Bank of Israel criticized the sector-specific approach.

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Story summary

Finance Minister Bezalel Smotrich proposed doubling the tax on banks' profits to 30% if they cancel customer benefits.
His proposal was a 15% tax on profits above the 2018–2022 average.
Smotrich argued banks should share profits with the public because rising rates benefited banks during the war with Hamas.
The Association of Banks opposes the tax, saying it burdens the public.
Bank of Israel criticized the sector-specific approach.