Israeli Parties Reveal Economic Platforms Ahead of Elections

As Israel approaches an election, various political parties are outlining their economic stances on key issues including taxation, housing, and consumer goods. The "Maariv" newspaper surveyed new parties and reviewed the voting records of established ones to present a comprehensive economic map for the upcoming vote. The report highlights differing approaches to tax hikes, the future of housing lotteries, and the potential implementation of congestion pricing.

Regarding the dairy reform, new parties like "Yashar" and "HaMiluimnikim VeHaKalkalaim" (The Reservists and the Economists) oppose the current proposal, citing concerns about shifting funds from farmers to importers and monopolistic practices. "HaTzi'bur HaHaredi" (The Haredi Public) supports the reform but advocates for abolishing the Dairy Council and opening the market to free import. "Amcha Israel" (The People of Israel) backs market competition but seeks protections for local production and a mechanism to review the reform.

On expanding the VAT exemption for purchases from abroad, the proposed increase from $75 to $150 failed to pass. "HaTziyonut HaDatit" (Religious Zionism) and Shas supported the expansion, while "Yesh Atid" (There is a Future), "Yisrael Beiteinu" (Israel Our Home), Labor, "HaMahane HaMamlachti" (The National Camp), Ra'am, and Hadash-Ta'al opposed it. Among established parties, the Likud and Yahadut HaTorah showed divided support, while "Otzma Yehudit" (Jewish Power) was split. New parties also diverged: "Yashar" opposes the exemption, preferring to address competition barriers, while "HaTzi'bur HaHaredi" supports an exemption up to $200 to boost competition.

Concerning income tax brackets and credit points, a freeze was approved in December 2024, largely along coalition-opposition lines. "Otzma Yehudit" members voted against it due to budget disputes with Bezalel Smotrich. "Yashar" prefers cutting coalition funds and unnecessary ministries, while "HaMiluimnikim VeHaKalkalaim" advocates for tax reductions through efficiency and growth. "HaTzi'bur HaHaredi" is open to a temporary VAT increase for war funding and suggests removing exemptions on fruits, vegetables, and in Eilat. "Amcha Israel" acknowledges the need for revenue but opposes the tax freeze, calling for an end date and review of non-essential spending.

New taxes on sweetened beverages and single-use products, initially introduced under the Bennett-Lapid government, were later canceled by the current government. "Yashar" and "Amcha Israel" support these taxes, viewing them as a way to tax negative externalities. "HaMiluimnikim VeHaKalkalaim" supports taxing harmful products but wants it balanced with other tax reductions. "HaTzi'bur HaHaredi" fundamentally opposes these taxes, deeming them patronizing.

On congestion pricing, most new parties agree on the need for alternatives to private cars. "Yashar" and "Amcha Israel" would accept congestion pricing if viable public transportation is available and revenues are allocated to it. "HaMiluimnikim VeHaKalkalaim" strongly opposes it under current conditions, citing the lack of public transport. "HaTzi'bur HaHaredi" supports mileage-based payments to regulate demand but wishes to discuss the plan's details in the Knesset.

Finally, regarding housing lotteries, "HaMiluimnikim VeHaKalkalaim" supports continuing such programs with preference for military and national service members, while encouraging investment outside real estate. "Yashar" emphasizes that lotteries don't increase housing supply and prefers accelerating construction. "Amcha Israel" aims to fundamentally change policy by focusing on increasing supply, with a limited track for reservists and the periphery. "HaTzi'bur HaHaredi" proposes canceling state land allocation and marketing large tracts to private developers for comprehensive neighborhood planning, with benefits for reservists and strategic settlement.