Smotrich plans taxing banks' 'excessive' profits

• Published date: 30 May 2023

Smotrich said, "It is not possible to talk in the context of the fight against concentration and the cost of living about the bank's profits as a result of the increase in interest rates. They are making these profits from the current situation and the large interest gaps between credit and deposits, and not through hard work and efficiency."

He added, "I find a lot of logic in taxing these excess profits at high rates, mainly to prevent the banks from having the motivation to obtain them, and to make them roll them back to the public using the variety of tools at their disposal."

Smotrich thinks that such a tax on excess profits is, "The best way to correct the injustice created by interest rate gaps and ease the situation for mortgage takers, without needing the damaging legislation reflected in some private members bills that have been tabled."

Smotrich spoke about the huge profits recorded by the banks over the past 30 months. In 2021, Israel's five biggest banks, Leumi, Hapoalim, Discount, Mizrahi Tefahot and First International, reported...