Supreme Court Orders New Interior Minister to Decide on Haredi Tax Breaks

Hours after Gideon Sa'ar was approved as Israel's new Minister of Interior, the Supreme Court issued a ruling demanding he decide within 30 days whether to condition municipal tax (arnona) discounts for Haredi men called for military service on their regularization of status with army authorities. The court, led by Deputy President Noam Sohlberg and including Justices Dafna Barak-Erez, David Mintz, Yael Vilner, and Ofer Groskopf, instructed Sa'ar to determine if and how to amend the arnona discount regulations. This ruling follows a previous order from April 26, 2026, and the court's decision to allow Sa'ar time to properly consider the matter given his recent appointment.

Sa'ar's appointment fills a vacancy left since Moshe Arbel resigned, during which the original deadline for the court's decision passed. Despite previous court demands and Prime Minister Benjamin Netanyahu's commitment to appoint an Interior Minister before the elections, the position remained vacant until now. The timing of Sa'ar's appointment, coinciding with political negotiations between Haredi parties and the "change bloc," has raised questions about potential political pressure. The appointment removes an institutional barrier to deciding on the arnona issue, placing the sensitive matter directly before the new minister.

In a related matter, the Supreme Court also ordered Finance Minister Bezalel Smotrich and Transportation Minister Miri Regev to decide within 21 days on public transportation discounts for those called for service who have not regularized their status with the army. The court further mandated the state to provide an update by January 1, regarding criminal enforcement actions and cooperation between military and police authorities. The justices reiterated that this is not merely about complying with a court order but about enforcing the law, specifically the general and equal conscription duty stipulated in the Security Service Law.

With the clock now ticking, Sa'ar faces a critical decision within a month that could significantly impact many Haredi families financially. This issue may also become a focal point in the ongoing political negotiations for forming a new government.