Unless the last minute change, the net link to Israel’s security forces will be cut into hundreds of cycles per month beginning in the salary in July. This is when the Israeli directives related to tax tax to cancel historical agreements that give security forces an almost benefits, such as food and vacation, is set to be enforced.
Of a directive sent to security forces in September by tax Tax Sho Aharonvich, he said they “acted as opposed to tax laws.” In preparation for decision implementation, feverish negotiations occur between the tax authority and the Ministry of Finance and the service of the Sursey that seeks to cancel the decision or soften it. Others are still threatened to turn to the attorney’s general when understanding is not reached.
Directly hit the pocket
The amount of dispute tax benefits, which are different from security forces, estimated by hundreds of millions of cycles per year by tax authority. The Ministry of Defense estimates the amount on the scale more than NIS 1 billion cycle every year. This is considerably smaller than many adventurous negotiations between the Ministry of Finance and IDF in the defense budget adds to fund the war maintaining. But this time, if the pockets of security employees are directly at risk, and between a war, the emotions run high.
In the center of the storm an agreement signed in 1995 between IDF and tax authority. Agreement builds special arrangements for tax deductions from the benefits of army professionals, “based on a common understanding of the IDF service.” Two of the main benefits covered under the agreement are foods that members receive and vacations receive where service members are entitled each year. Now, these benefits do not have taxes from taxes or subjects only to a symbolic tax. During the years, benefits from the agreement were expanded to include police, the prison, Massad, and Shin bet.
In addition, some of the benefits are given even to the officials of the defense ministers, internal security, and security servants – security servants without wearing a uniform. Some of the expansions come through the resolution of 33, which prompts the conditions of different bodies of idfs. However, the Ministry of Finance insists that expansions are also voluntarily by bodies. On the other hand, it is admitted that the benefits of civilian bodies are not neglected compared to uniform security forces.
In the framework of negotiations, Aharonovitz explained that he did not seek to harm the service members, but rather the tax deductions rooted in the years and producing a lack of uniformity in the system. He does not blow the possibility that the date is for dispensing the cancellation of benefits to post several months until agreements achieve different body security.
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Who has the right to benefits?
More than economic parts of the dispute, there is also a disagreement with the question of who has the right to these benefits. Among other things, the Ministry of Finance is checking if it is possible to reach a compromise based on a difference between staff left and closed with security personnel.
Most security agencies are waiting to see which agreements can be reached, if any, in discussions between the Ministry of Finance and the Main Player – the IDF. Army representatives explain the tax authority that they disagree with a loss of net salary cycle to permanent employees.
IDF has not declared an objection to the principle of opening the old agreement, but it is suggested that the difference from cancellation of benefits found in security forces. In other words, they will receive an addition to their gross salary to off the tax increase they pay by cancellation of benefits. However, it will require an annual budget increase in NIS 700 million according to IDF calculation, not interested by the Ministry of Finance. An alternative compromise can be a gradual enforcement of the new outline for future security personnel, to avoid injury to salaries at present.
Due to the ongoing war and the need to maintain the behavior of security forces, the issue of further meaning in politics and security. The question is to find a compromise solution to balance the need to maintain tax and recognition principles of security forces?
Negotiations that are about to break
According to government sources, the talks between the tax authority and some of the security agencies lead to a collapse. However, other sources involved in negotiations claim that IDF talks are actually made under the understanding of each other to harm the soldiers and reach a comprehension. Forever, discussions remain under the radar, but when they enter the final stretch, pressures can lead to political intervention in financial Bezalel Smotrich and Minister of IGZ defense.
No response to this report from tax authority and IDF.
Published in Globes, Israel News in News – en.globes.co.il – On May 29, 2025.
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