The Israeli Knesset has given final approval to legislation granting tax exemptions to dozens of illegal settlements in the occupied West Bank.
In a statement on Thursday, the Knesset said lawmakers approved the bill on its final reading, granting tax benefits to illegal settlements located in what it called the “eastern confrontation line zone.”
The legislation was sponsored by Knesset members Zvi Sukkot, from the Religious Zionism party led by Finance Minister Bezalel Smotrich, and Limor Son Har-Melech, from the far-right Jewish Power party led by National Security Minister Itamar Ben-Gvir, along with other lawmakers.
The bill passed by 32-23 votes. Under the law, occupants will be entitled to tax exemptions throughout the tax year and may choose among available tax benefits if they qualify for more than one exemption.
Benefits for illegal settlers
The legislation is set to take effect in January 2027 and remain in force through December 31, 2027. It also authorises the finance minister, with approval from the Knesset Finance Committee, to extend its validity for additional periods of up to two years each.
In a report published at the end of May, the Israeli anti-settlement group Peace Now said the law would classify dozens of illegal settlements as areas whose residents are eligible for substantial tax benefits.
The group noted that the original bill sought to extend tax benefits to all settlements but was narrowed due to its high cost and professional objections, ultimately applying to 58 illegal settlements.
According to Peace Now, the updated version primarily includes illegal settlements where support for the Religious Zionism party is particularly strong.
The international community considers settlements built in the occupied Palestinian territory illegal under international law and a major obstacle to a two-state solution.
Netanyahu's government has openly championed a significant expansion of illegal settlement activity since taking office at the end of 2022. According to Peace Now estimates, more than 750,000 Israeli occupiers live in the occupied West Bank, including East Jerusalem.
