Story perspectives

Knesset Rejects Smotrich's Tax Hike Amid Public Backlash

2/27/2026

Summary

Story summary

The Knesset rejected Finance Minister Bezalel Smotrich's plan to double the minimum tax on foreign-delivered packages, 59–25.
Prime Minister Benjamin Netanyahu backed Smotrich, but Smotrich underestimated the influence of importers and shop owners within Likud.
Smotrich continues to support ultra-Orthodox institutions while ignoring the majority's views, signaling a misalignment with public sentiment.
Historical parallels with Yigael Hurvitz in 1979 illustrate ongoing challenges for finance ministers from small factions.

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Story summary

The Knesset rejected Finance Minister Bezalel Smotrich's plan to double the minimum tax on foreign-delivered packages, 59–25.
Prime Minister Benjamin Netanyahu backed Smotrich, but Smotrich underestimated the influence of importers and shop owners within Likud.
Smotrich continues to support ultra-Orthodox institutions while ignoring the majority's views, signaling a misalignment with public sentiment.
Historical parallels with Yigael Hurvitz in 1979 illustrate ongoing challenges for finance ministers from small factions.