Smotrich’s party to stop voting with coalition until Knesset passes law giving tax breaks to reservists

Finance Minister Bezalel Smotrich announces that his Religious Zionism party will stop voting with the coalition until the Knesset passes legislation providing tax credits for IDF reservists.

In a statement, the far-right lawmaker states that “in light of Likud’s refusal to advance the bill… to provide tax benefits to reservists, the Religious Zionism faction will not vote with the coalition until the Tax Benefits for Reservists Law is approved in second and third reading.”

The [arty adds, “Reservists come first. The State of Israel owes them everything and this outweighs any political consideration. No MK is allowed to harm reservists.”

The government approved the tax benefits in August and the legislation has since passed the first of three readings needed to become law but has since been held up in the Knesset Finance Committee.

If passed into law, the bill would grant income tax credit points to combat reservists on a graduated scale based on the number of days served. Reservists would receive more benefits depending on the time served and how many children they have.

Responding to Smotrich, coalition whip Ofir Katz says that “the bill in its current form drastically discriminates against many reservists, especially students and those with low incomes, who will not be able to take advantage of the benefit.”

“The purpose of the bill is commendable, but changes are needed, and there is agreement on this among all members of the Finance Committee. It is a shame that someone who has been opposing ultimatums and boycotts for three years is acting in this way instead of resolving the matter substantively, and is refusing any compromise offered to him.”

“We seek to benefit all reserve soldiers, not just those with high incomes. I support Finance Committee chairman Milwidsky and the committee members in their just struggle,” Katz says in a statement.

Religious Zionism’s decision not to vote with the coalition will have little impact, as the coalition does not currently have a majority as it is and is contending with an ultra-Orthodox legislative boycott.

Finance Committee chairman Hanoch Milwidsky has previously complained that there are significant economic disparities in the bill, which he asserted discriminated against lower earners.

“I’m very sorry, but I can’t shake the feeling that in the finance minister’s office they’re more concerned with how they look in the media — with making it seem as though they support the reservists and are doing something — while in practice, when it comes time to actually do the work, they’re not really doing it,” he told the committee last month.