Israeli Labor Federation leader condemns finance minister's savings‑tax reform

Israel's Finance Minister Bezalel Smotrich is pushing a comprehensive reform of the short‑ and medium‑term savings and investment market, introducing a "Unified Investment Account" that would allow savers to move funds between pension plans, insurance policies and mutual funds without triggering a taxable event. The reform sets a cumulative deposit cap of 200,000 shekels per resident for the new tax benefits, which critics say will penalise savers who wish to accumulate larger sums.

National Labor Federation (HaHistadrut) chairman Yoav Shumchi warned that the measure "directly harms Israeli families" and likened it to the government "reaching into the pockets of the middle class" at a time when households face high living costs, mortgages and interest rates. He argues the cap will limit the ability of middle‑income workers to build financial security for retirement.