The Knesset plenum approved in its first reading on Tuesday a bill to grant tax benefits for settlements in the West Bank that are under security threat status.
The bill passed with 37 lawmakers in favor and 33 against. It will return to the Knesset Finance Committee for further debate and still must pass two additional readings in the plenum to become law.
The bill would amend the country’s Income Tax Ordinance, which grants tax reductions to communities deemed under security threat but currently does not consider West Bank settlements eligible. It is proposed to grant settlements in the West Bank under a defined security threat status, a 25% increase within the overall scoring system for tax benefits.
The proposed amount is similar to the tax benefits provided to border communities in the country.
The bill was sponsored by MK Zvi Sukkot, a member of the right-wing Religious Zionist Party. A preliminary bill by MKs Limor Son Har-Melech, Yitzhak Kreuzer, and Zvika Fogel from the Otzma Yehudit Party was attached to it.
Bill granting tax breaks to West Bank settlements advances
The Yesha Council, an umbrella organization of municipal councils of Jewish settlements in the West Bank, welcomed the bill’s approval in the first reading. “The bill corrects long-standing discrimination and delivers justice,” the group stated.
“It also reflects the settlement momentum during the current term and, above all, strengthens settlements in Judea and Samaria," it said.
“We call on our colleagues in the Knesset and government to act swiftly so we can soon complete the process, pass the law in its third reading, incorporate it into statute, and further strengthen settlement,” it added.
Under the 1990s Oslo Accords between Israel and the Palestinian Authority, the West Bank was divided into three areas: A, B, and C, with Area C under full Israeli control.
Israel’s roughly 500,000 settlers live mainly in Area C, with most settlements considered legal under Israeli law and built on state land through government-approved decisions.
Right-wing ministers and lawmakers have continuously pushed for Israeli sovereignty over all areas in the West Bank, drawing sharp criticism and condemnation from leaders of various countries worldwide.