The Finance Ministry warned Sunday that the proposed Basic Law: Torah Study would force a 16% across-the-board tax increase, saying restoring allowances would prevent draft-eligible yeshiva students from entering the workforce, severely damaging economic growth and the welfare of all citizens. The warning drew public anger, with critics saying the law both supports draft dodgers and increases the burden on taxpayers.
The Finance Ministry reiterated Sunday its warning that the proposed Basic Law: Torah Study would necessitate a 16% tax increase, arguing that restoring allowances for yeshiva students would disincentivize workforce participation, critically harming growth and the welfare of all citizens. The warning, first reported by the ministry earlier in the day, was accompanied by a specific quote: 'Returning the allowances will prevent exit to work, which will critically damage growth and the welfare of all citizens, and will force the state to raise direct taxes by 16% in the future.'
The statement triggered public backlash, with one comment cited saying: 'The law both supports draft dodgers from the IDF and increases the burden on taxpayers.'
The development extends a fiscal and political clash over the bill, which would enshrine military-service exemptions for yeshiva students in a Basic Law. As The Zioneer reported earlier Sunday, the Finance Ministry's legal adviser had also warned of significant fiscal implications, leading Finance Minister Bezalel Smotrich to denounce his own ministry's legal adviser as displaying 'sheer ignorance.' The bill is expected to face further opposition as the Knesset moves toward final readings.
2 developments
- StrongFinance Ministry warns reserve costs could force future tax increases
- DevelopingHaredi official accuses Smotrich of using Finance Ministry opinions to block Torah study law
- StrongSmotrich opposes ultra-Orthodox Torah-study Basic Law bill
- DevelopingState urges High Court to strip tax benefits from yeshivas housing draft dodgers — analysis reveals 430M shekel annual savings
Source and signal
- Internal intake