Israel proposes taxing bank profits to pay for the war

Defending the shekel will become harder for the government and it may have to accept devaluation as a compromise.

Isr Minister of Finance Bezalel Smotrich is proposing a plan to increase the tax on bank profits to fund the ongoing war. The plan would see the tax on bank profits rise from its current rate of 17% to 26% in 2024 and 2025. The Ministry of Finance forecasts that the increase in the tax rate will result in additional revenue of about 400 million dollars for each of the next two years.