Israel’s economic plans for the 2025 budget, published early Wednesday morning, include a provision that limits the benefits package for new immigrants (olim) to those whose financial assets amount to less than NIS 500,000.The provision, called “Progressiveness in Aliyah Integration,” simultaneously increases the benefits for individuals earning less than NIS 500,000 by 10%. It is expected to save the state NIS 100 million in 2025 spending.The benefits for olim currently include a 10-year exemption from most individual and corporate taxes earned outside of Israel. It also includes an exemption from disclosures and reporting requirements; grants a one-year acclimation period where new immigrants can choose not to be considered Israeli residents for tax purposes; and a reduced real estate purchase tax.
The Knesset Aliyah and Integration Committee held an “emergency” meeting on Wednesday morning to discuss the measure. Committee chairman Oded Forer (Yisrael Beytenu) called for the measure to be removed since “its meaning is blocking olim from coming to Israel.” According to Forer, investments in olim have amounted to investments in growth, and placing conditions on the benefits package for olim “shows complete disconnect and potentially harms aliyah.”
“The State of Israel is an open home for aliyah for any Jew and not just for populations with low socioeconomic status, including well-off and educated populations who can enrich Israeli society in a variety of ways,” he said.
Adv. Avichai Kahana, director-general of the Aliyah and Integration Ministry, also opposed the bill, saying it was “born in sin.”
Aliyah Ministry will not be able to operate basic programs
“The Jews of the world are experiencing antisemitism that hasn’t been seen for decades, and this has led to an increase in the number of aliyah requests. In this period especially, the benefits package should be enlarged,” Kahana said. He also addressed general cuts in his ministry’s budget in 2025, warning that it will “not be able to operate the most basic programs.”“We will not be able to continue integrating new olim into the State of Israel with a low budget that is missing NIS 170 million,” Kahana said.His response indicated an unusual lack of communication between the aliyah and finance ministries, despite both ministers, Bezalel Smotrich and Ofir Sofer, respectively, coming from the same party (the Religious Zionist Party).
The economic plan will be discussed by the government in a marathon debate beginning on Thursday and likely to last until Friday afternoon, and it is unclear whether or not the measure will be approved. Even if approved, it will still need to make its way through Israel’s legislative process in the Knesset, and some MKs may attempt to amend it.