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Knesset Approves Tax Breaks for West Bank Settlements

6/5/2026

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Smotrich Approves Settlement Tax
  • Knesset created an “eastern confrontation line area” tax category extending benefits to West Bank settlements since Oslo accords.
  • Lawmakers approved the tax-benefit legislation by a 32-23 vote, which takes effect in January 2026 and runs through December 31 2027.
  • Finance Minister Bezalel Smotrich said the amendment corrects a historic injustice and ends second-class status.
  • Israel Tax Authority estimates NIS 130 million ($35 million) as Council approved 2,162 units in Gvaot, Har Bracha, Kiryat Arba.
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