A Tax Policy that Hurts Farmers
- ACRI
- 2 days ago
- 2 min read
On February 9, 2026, ACRI submitted an appeal to the Chair of the Knesset Committee objecting to a proposed amendment to the Property Tax Law, introduced as part of the 2026 Economic Efficiency Law (“Arrangements Law”). The amendment proposes imposing a property tax on vacant land designated for construction and on underused agricultural land of up to 1.5% of the land’s value. The property tax was previously repealed after experts pointed to technical difficulties related to the tax and also acknowledged the unique harms it would pose to Arab landowners.
In the appeal, attorneys Yael Seidemann and Hagar Schechter argued that although the amendment is presented as neutral, it is expected to affect the Arab public almost exclusively and disproportionately, thereby widening economic disparities and infringing on the right to equality. They also warned of harm to farmers, and consequently to Israel’s national resilience.
The appeal addressed the unique characteristics of the real estate market in Arab society and the specific barriers that make it difficult for landowners to develop or sell their land. These include: a shortage of land due to expropriation; the preservation of familial ties to land and the desire to pass it on to future generations; a lack of master plans for Arab localities and municipal boundaries that do not correspond to rates of population growth; inadequate infrastructure; difficulties in obtaining building permits; and obstacles in accessing mortgages and financing.
Anticipated consequences from reinstating the property tax for Arab society, include:
Discriminatory tax burden: While companies building on State land will be able to use the tax payment as a deductible expense, the Arab population, which holds private land, will bear the tax burden alone.
Risk of land loss: The tax may force landowners who cannot afford the payments to sell their land to large corporations or landowners, leading to a concentration of resources among the wealthy.
Harm to traditional agriculture: The tax may further shrink the number of open green spaces, and spaces for leisure and subsistence crops in Arab localities that suffer from discriminatory infrastructure provision.
The petition also noted the anticipated harm to farmers, who are already struggling. The tax would create an incentive for farmers, particularly small‑scale farmers who may struggle to meet the payments or those whose land is located near economically strong localities in central Israel, to change the land’s designation and sell it rather than continue agricultural cultivation. This would result in the concentration of land resources in the hands of the wealthy and powerful, a reduction in agricultural activity, and increased dependence on imported agricultural produce.
ACRI's appeal, February 9, 2026 (Heb)