Smotrich warns banks not to cancel benefits for customers over new tax

Finance Minister Bezalel Smotrich warns the country’s banks that he will double the proposed tax on lenders’ excess profits to 30%, should they cancel any benefits or financial relief programs for customers.

“I saw a threat from the banks that they will cancel benefits for consumers, should the tax be imposed on them,” Smotrich says. “If benefits for consumers will be cancelled, I will double the tax from 15% to 30%.”

Smotrich earlier this week announced plans to introduce a law to tax commercial banks 15% on excess profits, accusing them of taking advantage of high interest rates to boost their profits during the war period and vowing to break their hold.

Israel’s commercial banks have raked in record profits over the past two years as they continued to cash in on high interest rates and fees paid by mortgage and loan holders during the war with the Hamas terror group.