Finance Minister Bezalel Smotrich outlined the government’s new economic and security priorities on Sunday, emphasizing tax reform and immigration incentives as key pillars of Israel’s post-war recovery strategy.
Speaking at the Chamber of Tax Advisors’ annual conference in Eilat, Smotrich announced a sweeping plan to offer “spectacular tax incentives” aimed at drawing new immigrants to Israel, calling it a “Zionist initiative that will bring valuable human and financial capital” to fuel economic growth.
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The minister also promised to reduce taxes on earned income, saying the middle class, which has shouldered both the economic and military burdens of the war, “should be the first to benefit from victory.” The move, he said, is designed to boost workforce participation and improve productivity.
Turning to foreign policy, Smotrich reiterated that Israel would not compromise on its principles in expanding the Abraham Accords. “No one is doing us a favor by normalizing relations with us,” he said. “We will not pay for peace by giving up parts of the Land of Israel.” He warned that Israel would reject any accords based on “the lie of a terrorist state that threatens our future.”
On defense spending, Smotrich signaled a shift toward fiscal restraint, announcing the end of the “blank check” given to the military during the war. “The defense establishment must become more efficient,” he said, stressing that while spending will remain higher than prewar levels, it must “return to normal figures” under tighter budget discipline.