NGO Demands Court Ruling on Draft-Linked Tax Discounts After Sa'ar Appointed

The government formally approved the appointment of Gideon Sa'ar as interior minister on Wednesday. This move concludes a vacancy that persisted for more than a year, leaving the ministry without a serving minister to handle its statutory duties. The appointment has prompted the non-governmental organization Israel Hofsheet to petition the High Court of Justice. The group seeks a ruling that compels an overdue decision regarding municipal tax discounts for individuals who have not regularized their military service status.

In its petition, Israel Hofsheet requested that the court grant Sa'ar until November 25 to determine whether and how to make these discounts conditional on resolving service obligations with the Israel Defense Forces. The government had previously attributed the delay in implementation to the absence of a minister with the legal authority to act on the matter. The organization argued that with a new minister now in place, the primary justification for the inaction no longer holds.

The High Court issued an order on April 26 regarding the enforcement of military service obligations. That ruling instructed the interior minister, or an acting minister responsible for the issue, to consider and decide within 35 days on amending the municipal property tax discount regulations. The proposed changes would apply specifically to those called up for service who have not yet regularized their status with the IDF. According to the NGO, the May 31 deadline for this decision passed without any action being taken.

Israel Hofsheet noted that the state's own filings indicated that preparatory work had already been completed. Attorney-General Gali Baharav-Miara accepted that the minister possessed the authority to amend the regulations. Additionally, the ministry's legal adviser had submitted draft regulations on May 18. Despite this, an update from the state dated October 22 stated that the matter had not advanced and that a proposal to transfer the authority had not been brought before the government.

The organization is now seeking both a ministerial decision and a detailed state update by November 25. This update must include the reasons for any decision and, if regulations are amended, the specific date when they will take effect. Sa'ar will continue to hold the foreign affairs portfolio while taking on the interior role. His appointment occurs within Prime Minister Benjamin Netanyahu's outgoing government, following the October 27 election and the swearing-in of the new Knesset on Tuesday.

President Isaac Herzog granted Gadi Eisenkot, leader of the Yashar party, the mandate to form a government on Sunday. This mandate was recommended by parties representing 67 lawmakers, including the Arab parties Ra'am and the Joint List. Netanyahu's electoral bloc secured 53 seats, while Eisenkot's bloc won 48. The two Arab parties combined for 19 seats. Eisenkot is currently working to assemble a replacement government amid ongoing coalition talks.

Military conscription remains a central obstacle in efforts to include ultra-Orthodox parties in an Eisenkot-led administration. Shas, whose member Moshe Arbel previously held the Interior Ministry, reiterated on Tuesday that it supports Netanyahu and is not negotiating with another candidate. United Torah Judaism, which declined to recommend a candidate to the president, has been involved in discussions with Eisenkot's camp.

The vacancy in the interior ministry began after Arbel resigned in July 2025. The subsequent temporary appointment of Justice Minister Yariv Levin expired in October. Sa'ar had previously served as interior minister from 2013 to 2014. During the period without a permanent minister, the government repeatedly transferred individual powers to Netanyahu to address urgent needs, though other decisions remained without legal authorization.

Ministry staff and agencies continued their operations during the vacancy. However, officials could not make decisions reserved by law for the minister, and the ministry lacked leadership to set policy or represent it in cabinet and budget discussions. Documents submitted to the High Court described various administrative bottlenecks, including pending humanitarian residency applications and difficulties in approving foreign caregivers.

Local authorities also faced significant obstacles, such as permissions for loans, changes to municipal taxes, and the distribution of funding. In August, government lawyers acknowledged that gaps remained in authority, specifically regarding the ministerial power to issue municipal revenue-sharing orders.