Tax Breaks for Settlers
- ACRI
- Jun 28
- 1 min read
ACRI filed a Supreme Court petition on June 28, 2026, seeking the repeal of the Tax Benefits for Eastern Front Line Area Communities (Temporary Provision) Law, 5786–2026. The law grants a tax benefit to residents of “eligible Eastern Front Line Area communities” through a separate track from the general tax-benefit systems established in the Income Tax Ordinance.
This is a tax break intended to benefit a specific group of settlers. The criteria established by the law, which include residing within a distance of up to 2km (1.2 miles) from the security fence and relying on student transportation protection requirements are tailored so that they apply to a specific group of settlers while excluding other groups that also face security threats but have different sectoral characteristics.
The law violates the right to equality. It was enacted through a flawed legislative process and is counter to the positions of the professional authorities in the Ministry of Justice, the Israel Tax Authority, and the Ministry of Finance. The fact that this law was tailored to apply to a predetermined group of beneficiaries undermines the rule of law and public trust in the legislative process. It is no coincidence that this law was passed as elections are approaching: it is a distribution of benefits to a particular electoral group. It also encourages settlement in an occupied territory, contrary to international law. This law was not established for legitimate purposes, and is inconsistent with the values of a law-abiding, democratic state.
HCJ 82617-06-26, Association for Civil Rights in Israel v. The Knesset
Attorney: Michal Tadjer
The petition, June 28, 2026 (Heb)
