זה קורה עכשיו בחצות: הדלק יורד בחצי שקל! ככה נלחמים ביוקר המחייה 🇮🇱 pic.twitter.com/6In5RgcP72

— בצלאל סמוטריץ' (@bezalelsm) September 6, 2026

As you might recall, the monthly adjustment to the price of gasoline hit historic highs at the beginning of September, hitting the price of 8.25nis per liter of gasoline. The price is adjusted monthly based on the price of oil which fluctuates all the time. The past couple of years has seen the price of gasoline get very expensive due to the ongoing war/conflict with Iran which has the price of oil fluctuating wildly sometimes going unreasonably high due to closures of the Strait of Hormuz (Strait of Trump?). However, the price of oil is only what makes the price of gasoline fluctuate monthly - the factor that makes gas in Israel so expensive is the very high excise tax (aka the blu) levied on gasoline plus the VAT. The blu tax is about 3.66 per liter making up about 44% of the cost of the gasoline, plus the VAT being 18%... so about 60%, give or take, of the price of gasoline that you pay at the pump, in Israel, is pure taxes. 

So when gas hit the historic high of 8.25nis per liter, Smotritch decided he would issue an order to cut the tax and lower the price. This has been done before and is considered a legitimate method of easing the burden a bit. It hit a snag as it had to be decided if this decision is allowed during an election season or not. once it was approved, Smotritch signed the order and all is good. 

the problem with the above video is Smotritch talking about this being the way to fight inflation and to fight the cost of living increases, etc... Smotritch signed a temporary order for cutting the tax, not a permanent order. It is in place for just two months. he did not lower taxes, he lowered the tax until the election. And in doing so, he also did not cut spending anywhere else at the same time to pay for it, but just threw this deficit on to the next government (which he might or might not be part of) to figure out how to pay for. 

Smotritch can definitely walk around saying things like we cut the pain for you so you wouldnt have to poay so much at the pump right now and things like that but fighting inflation with a temporary two month order without any cuts to cover it?  This doesn't combat inflation in any way.

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דו״ח שלום עכשיו. רגע של נחת על הבוקר 😌 pic.twitter.com/dKrm3A233N

— בצלאל סמוטריץ' (@bezalelsm) July 14, 2026

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There is opposition from small business organizations who feel this is unfair competition to them as they have expenses and have to charge VAT while consumers are now being encouraged to buy more online VAT-free. Smotritch, justifying the expansion of VAT-free imports, said this is....

part of “a broad and significant series of steps” aimed at lowering the cost of living, alongside efforts to shake up the banking and dairy sectors.


All of these steps are predicated on the proposition that “it can be cheap here,” he said, arguing that “the Israeli economy is often dominated by a small number of strong monopolies,” giving consumers only the illusion of choice.

“There is no reason why an international chain’s garment should be sold here for” significantly more than abroad, he argued. “There is no justification for a shoe that is sold in the United States for half the price – to be sold here for double the price.”

Second, Smotritch is right. At least partially. Local retail does largely overcharge. But. But. But. But local retailers need to pay and to charge 18% VAT (increased last year from 17%, and is now being considered for another increase again to 19%). Local retail businesses need to pay a lot of taxes and regulatory fees, including arnona which is being increased again.

So yes, commerce in Israel is expensive, and the retailers take advantage when they feel they can and charge high prices, but some of those high prices come from the high taxes they have to pay and charge here in Israel. Smotritch can't really complain about them being expensive when he is comparing businesses with VAT and other taxes to businesses without VAT and those other high taxes..

While online retail is very popular, a lot of people also like to go into stores and buy thigns. Either they want to try the clothes on, or they want to buy something right now and walk out with it and not wait 2 weeks to get it and then see if it fits right or whatever. Many things don't ship to Israel. Many things are too expensive to ship to Israel. People will still go into stores. FM Smotritch should be helping and encouraging them to lower their prices as well by cutting their taxes - let local retail stores also sell up to a certain limit without VAT, or with lower VAT. 

Whenever I have been to Eilat, including a relatively recent trip, it s busy everywhere and at all the activities. The busiest places, by my observation, are the malls and shops. People vacationing in Eilat take advantage of the VAT free shopping. People will continue to buy plenty in store around Israel, especially if VAT is lowered or done away with locally as well.

Smotritch has said he will not impose new taxes on the public (it is an election year) and when Netanyahu said he wants to increase the defense budget by 350 million shekels over the next ten years Smotritch basically said over my dead body and he wont agree to raising taxes to cover it - he said the PM himself can take responsibility for that.

The other day Smothritch signed an order allowing local municipalities to increase the arnona tax on residents. Today Smotitch explains himself saying that isnt a tax we put on residents, the local municipality does, so dont blame us - they are allowed to increase the arnona rate, but we suggested they dont. Blame them.

The other day Smotritch announced he will soon be signing an order to double the VAT exemption on personal imports (aka online shopping from Amazon and Ali Express, etc) to $150 or maybe even $200, though he has not yet signed the order, which make consumers happy. Then it becomes known that he is considering raising VAT to 19% (PM Netanyahu seems to be opposed to this at this time).

Recently the Ministry of Transportation announced prices are set to go up once again  in January after a very recent increase. After public outrage they cancelled that. Did they not think people would be upset when they initially announced it? 

This is very strange for an election year. I guess they feel confident their base will support them no matter what they do, even increasing already high taxes.

ברכות לראש המוסד הנכנס האלוף רומן גרופמן.

רומן הוא קצין מצטיין שלא מפחד לומר את האמת ולחתור למגע.

רומן הוא בן חבורה מצומצמת מאד מהפיקוד הבכיר ערב השביעי באוקטובר שהתריע שוב ושוב על הקונספציה ועל הסכנה שיש בקניית שקט מדומה.

אני בטוח שהוא יקח את ההישגים המדהימים של המוסד…

— בצלאל סמוטריץ' (@bezalelsm) December 4, 2025

Best of luck to Roman Gofman in his new position (I think he only starts it in June 2026) and we all wish him much success. His success is our success, is Israel's success.

so Gofman warned them time and again before October 7 and they didn't listen?  And now they are planning to listen to him or only when he says what they want to hear?

As an aside, didn't they used to never announce the names of the heads of Shabak and Mossad? They always referred to them as an initial, until recently. Now they annoucne the names and who the candidates are and who has been selected and appointed, though other senior positions are still only referred to by a letter...

  -- Finance Miister Betzalel Smotritch

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  -- Finance Minister Betzalel Smotritch said this to Mayor of Jerusalem Moshe Lion, yesterday at a conference memorializing Rav Kook 

ok, let's say what happens with this!

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Finance Minister Betzalel Smotritch today announced that residents who need to be evacuated form their homes due to damage caused by Iranian missiles will get 580nis immediately.. he then went on to explain how the defense budget will need to be increased...

I assume the 580nis, yes - 580, not 5800 or 580000 will be not including whatever comes later with all the bureaucracy - rebuilding the homes, the various victims of terror/war outlays, etc..

Still, 580nis is pocket change. What is the purpose of this specific amount? What is Smotritch paying for with this handout? is it to feed a family dinner for one or two nights? To buy a Chofshi Chodshi, monthly bus pass, for one person to go to the homeless shelter? 

What great ideas do you have that this money should be spent on?

  -- Minister Betzalel Smotritch

to note, I am favor of everyone involved with any responsibility resigning and going home, leaving public life. That includes heads of the military, heads of the various security services, and heads of the political leadership. Everyone. 

That being said, I find it, once again, highly hypocritical of Smotritch and of many others in the government to be strongly pushing all these resignations and/or firings for everyone else, and also pushing to get investigations and conclusions finalized, while they themselves sit tightly in their own chairs and refuse to allow an investigation to even begin into the entire picture and into the political side specifically (ie army investigated itself but didnt look at the political side, shabak investigated but didnt look at political, etc). And specifically saying the above, what a lack of self-awareness. Bar wont quit so it is a targeted strike on personal responsibility? Maybe it is but Smotritch also hasnt quit, and he even said a few times they in government including himself are all responsible.  he is right about Ronen Bar but he is being super-hypocritical, as is everyone else in the government who pushes this all on everyone else while refusing to allow the government to be looked at. 

  -- Finance Minister Betzalel Smotritch

I hope this is true and I hope they act on it. Threats are only useful if you let the enemy know the threat. I havent heard this publicized until Smotritch said it today. Let Hamas know, loud and clear.

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When Ben Gvir pulled his party out, Smotritch decided to punish them by resigning from his ministerial position, thus kicking out MK Kroizer from the Knesset, and then Smotritch would take his position back. Taking back the ministerial position would not put Kroizer back in as MK - the Norwegian Law can only be applied once per MK (per Knesset), and Smotritch would have to resign from the Knesset, which he would not do for Kroizer even if he could.. 

They ended up not playing this game because Ben Gvir wanted to keep his guy in despite not being part of the coalition. He negotiated with Smotritch and they worked out a deal by which Smotritch would not resign, thus leaving Kroizer in. Kroizer would commit to voting with the coalition. On any vote he plans to vote against the coalition he would give 48 hours notice, enabling Smotritch to decide whether or not to resign and kick Kroizer out. And additionally Almog Cohen would be left in place as he was not following Otzma decisions anyway and was voting with the coalition even when Otzma decided not to.

Games. 

Others can play games too. 

It is being reported that Minister Yitzchak Goldknopf (of UTJ) is considering resigning from his ministerial position, go back to the Knesset, then take back his ministerial position while keeping his Knesset seat. This would kick his "Norwegian MK", Yitzchak Pindrus from Degel Hatorah, out of the Knesset but Goldknopf is more concerned with getting himself more power in his fight over the Draft Law and taking back his Knesset seat will give him back his Knesset vote.

To that end, his aide, Motti Bebchik, has been checking within UTJ what the ramifications of such a move would be. Bebchik reportedly checked in With Uri Maklev to see if Goldknopf resigns and does this shtick if Maklev (from Degel) would retaliate and also resign his [deputy] ministerial position to kick out Moshe Roth (from Agudath Israel) from the Knesset being his Norwegian MK. And if they do this, Meir Porush (from Agudath Israel) might also resign to kick out his Norwegian MK Yaakov Asher (from Degel Hatorah).

And Degel has warned that if Goldknopf resigns and pulls this shtick leading to the removal of two Degel MKs, they may vote against approving him as minister when he tries to take back his ministerial position. 

I am fine with Smotritch's position. He really believes that is what is necessary and believes Netanyahu's promises to act in that regard. Even if I dont think it is realistic (and maybe I'll be proven wrong eventually), that is not something I will criticize him for. Smotritch has position he believes is correct, and he has a plan for how it should/will happen and work.

My question is for Prime Minister Benjamin Netanyahu. Netanyahu doesn't tell the Israeli people anything. We have no idea what his plans are, how hew thinks it should work or how it will work, how he plans to maneuver between Trump's push to not have a war, continue the deal and see it through to the end, and his own desire to keep his government intact and placate Smotritch who wants to go back to war. Obviously he can hope Hamas violates the agreements and gives him an excuse, and maybe that is something simple to bet on, but what if they call his bluff and dont so as not to upset Trump or because they want/need more time to rebuild and get their prisoned people back? Netanyahu does not tell us how he will destroy Hamas, who will take over Gaza and or how anything is going to happen and what would be acceptable to him or Israel. if in 15 months of war Hamas has been able to stay in power and recruit enough new members to make up for those lost in the war, how will we destroy them now?

The demand to go back to war might be right, but not if it means going back to the same type of war we have had until now with no plan for destroying Hamas and no plan for removing them from power. All Netanyahu says over and over again is we will accomplish our war goals. Nice but how?

Smotritch says what he wants and how Israel should take land, how Israel should control Gaza, how Israel should repopulate Gaza. Netanyahu just says no to that but does not say what he wants to do.. so does Smotritch think he can push Netanyahu to act on what he is demanding? Netanyahu thinks as long as he goes back to the war Smotritch will be happy and think we are working towards those goals, but, as far as we know, Netanyahu does not have the same goals as Smotritch, so what would Netanyahu's goals be in going back to war - just send our kids to endless reserve duty so he can continue to keep his government alive? and when will Smotritch realize that Netanyahu is running a war that is going nowhere just to stay in power on the backs of the dead soldiers?

If Netanyahu has a plan and a goal for continuing the war, he should tell the Israeli people.

The family member asked, but the State abandoned them, they were kidnapped form within the borders of Israel, how can Israel just abandon them and not bring them back?

To that Smotritch replied "there was n abandonment, the State of Israel did not abandon them".

Besides for that being in direct contradiction to other things Smotritch has said, especially in the days following October 7, I have no idea what he meant. I would like to hear a reasonable explanation, besides for just evading responsibility. How would he define what happened on October 7? The attack was the attack and the government and military failed on that day, and the soldiers in the area and the citizens were both killed and kidnapped with no real opposition until individuals showed up. The Israeli government and military did not get involved for a long time, basically letting Hamas run amok in southern Israel for a dozen or so hours. I would like to hear a reasonable explanation as to what Minister Smotritch meant when he says Israel did not abandon anybody..

And I dont understand why the families continue talking with Smotritch considering the opinion he has repeatedly stated that he opposes a deal. Nobody has been able to change his mind, so I dont get why they continue to meet with him and listen to him say crazy things to them.

  -- Minister Betzalel Smotritch

I too prefer a deal now for all the hostages rather than for only some of them, but if that can't happen, then some is better than none. Smotritch prefers to abandon all of them than some of them which does not make sense. As far as Hamas controlling Gaza - if Israel would work to bring in another controlling force rather than just expecting it to happen on its own, Israel could ensure Hamas lose control of Gaza.

  -- Finance Minister Betzalel Smotritch

yalla! who is he talking to? He is in the Cabinet, he is a senior Minister. If it isnt being done it is the Cabinet's fault.

The Finance Minister, Betzalel Smotritch, is supposed to bring the new budget to the government by October 29 so that it has enough time to be passed by the end of the year. To note, if the budget does not get passed in time, the Knesset automatically disperses and the country goes to elections.

The Draft Law is on the docket and the Haredi parties are upset that it has been repeatedly postponed, causing all sorts of problems for them (especially the issue of subsidized day care).

After several threats to get the Draft law passed that saw the Haredi parties back down at the last moment, Minister Goldknopf recently repeatedly threatened several times to not allow the budget to pass unless the Draft law is passed first. As well, other laws would be blocked until the Draft Law is passed. The general thinking has been that as always they wont carry through with the threat and will back down at the last moment because they dont want to bring down the government, and in the worst case scenario Bibi will pay them off in some way to back down again. This time though with Goldknopf stepping up the threats it might be a real crisis.

Additionally, Smotritch responded to Goldknopf's demand of passing the Draft law before the budget saying it isnt going to happen. Some Likud MKs also spoke up today saying they will not support the Draft Law. Ben Gvir spoke up saying drafting to the IDF needs to be incentivized, and he is against forcing - people are taking that as supporting the Haredi position but he never said he would support the Draft Law so in my mind it is still unknown what Ben Gvir will do.

In an attempt to stave off the crisis, PM Netanyahu called a meeting of the heads of the coalition parties.

Interestingly, reporters have been reporting that Smotritch, Deri and Gafni did not participate in this meeting. So basically, if accurate, this meeting became one of Netanyahu, Saar, Ben Gvir, and Goldknopf.

I still think that Netanyahu has a card up his sleeve and may call for early elections, dispersing the Knesset. This solves the budget issues (which rumor has it the budget isnt ready) and the Draft Law issues. And, recent polls continue to show Netanyahu growing in power and popularity back to pre-war times. if Netanyahu trusts those polls and his internal polling supports the numbers as well. This very well might happen. I dont make predictions but I wouldnt be surprised if this happens. If he was really smart, he would do it over a hostage deal, but doing it over the draft law isnt so bad for him either if no hostage deal is to be had in a timely fashion. It may be his only solution if he cant get everyone to toe the line.