Israeli Finance Ministry Warns New Basic Law on Torah Study Will Require 16% Tax Increase

The Israeli Finance Ministry issued a warning on Sunday regarding the recently approved Basic Law: Torah Study, passed in a first reading in the Knesset last week. The ministry's professional staff stated that the law, promoted by the coalition, would impose a 16 percent tax increase to cover the additional budgetary burden. It argued that the law perpetuates the exemption of ultra-Orthodox men from military service and shifts more public funds toward the ultra-Orthodox community.

The Knesset approved the law in a first reading on Wednesday with 63 votes in favor and 53 against. The legislation grants Torah students rights equivalent to those serving in the military. Prime Minister Benjamin Netanyahu participated in the vote, unlike the preliminary reading, after ultra-Orthodox parties demanded a minimum majority of 61 Knesset members for passage. Netanyahu's late arrival delayed the vote, forcing MK Yitzhak Pindros to extend his speech to buy time.

Some coalition MKs opposed the law, including Deputy Minister Sharren Haskel and MKs Yuli Edelstein and Dan Illouz. Illouz criticized the law as a disguised benefit for non-serving populations, calling it a "true desecration of God" and accusing ultra-Orthodox factions of obstructing military recruitment even during existential wars. Shas chairman Aryeh Deri hailed the law as a historic correction recognizing the supreme value of Torah study and the spiritual role of its students. The bill's sponsor, Degel HaTorah chairman Moshe Gafni, said it restored the Torah's honor in the Jewish state.

The Finance Ministry's warning highlights the fiscal challenges ahead as the government balances social and military obligations amid political pressures from religious parties.