Israeli legal officials are moving toward a new financial front in the Charedi draft dispute: municipal property tax discounts. Deputy Attorney General Gil Limon today defended the possible revocation of property tax discounts (arnona) for Charedi men who have not reported for military service.

In a letter responding to Interior Ministry Director-General Israel Uzan, Limon said revoking the discounts had been identified by the Israeli Supreme Court and professional officials as an effective tool against mass non-compliance with the draft. “An arnona discount is not a vested right,” Limon wrote, while military service is “a legal obligation, a vital security need,” and failure to serve “severely harms equality.”

The move comes one day after the Attorney General’s office advanced another major sanction: blocking tax-deductible donation benefits for Yeshivot where eligible draft-age students who have not regularized their military status continue to learn. The Tax Authority is expected to publish a public notice on the policy by June 7, ahead of a July 13 Supreme Court hearing.

The issue goes to the heart of Israel’s long-running dispute over Charedi military service an arrangement now under growing legal pressure especially in recent days. 

Shas chairman Aryeh Deri accused the attorney general of pushing Charedim “to the edge,” saying the sanctions campaign was driving a growing rift between parts of the Charedi community and the state.