Minister of Finance Bezalel Smotrich has proposed a 15% tax on the super profits of Israel's banks, surpassing the 7-10% rate recommended by a professional team from the Ministry of Finance, the Israel Tax Authority, and the Bank of Israel. The draft bill targets banks whose annual profits exceed their 2018-2022 average by more than 50%, with the tax expected to generate over one billion shekels annually from 2026 through 2029. The measure is set as a temporary order until 2030.

The Association of Banks in Israel has strongly criticized the proposal, arguing it lacks economic rationale and contradicts the public interest. They warn that the tax could reduce credit supply, raise interest rates, and ultimately harm the public, which holds a significant share of bank ownership. The association also accused the minister of breaking previous promises and ignoring professional advice.