Yair Lapid calls for ‘tax revolt’ in Israel: experts warn of illegality and consequences

Yair Lapid/Photo: Reuters

Israeli opposition leader Yair Lapid spoke at a rally, calling on citizens to “tax revolt” in response to the government’s possible failure to comply with a ruling by the Israeli Supreme Court (BAGATS). This was reported by ynet on 23 March 2025. Experts call such statements incitement to a criminal offence and emphasise that such a scenario is unlikely to materialise in practice.

Lapid’s appeal and his arguments

During his speech, Lapid said that if the government ignores the BAGAC’s decision, it will lose its legitimacy and become “criminal”. According to him, in this case, the country must “stop” – from the work of the Knesset to the economy and the education system. “There is one system that cannot stop – the security system. We are against refusals, but the Knesset, the economy, local authorities, schools, and courts must go on strike. If it is possible to organise a tax revolt, we will organise a tax revolt,” the politician stressed.

Lapid stressed that the purpose of such a protest was to force the government to comply with court decisions, but his words provoked a sharp reaction in both political and expert circles.

Economic and legal implications

Economic observer Gad Lior explained that the “tax revolt” is aimed at creating economic chaos and destabilising public administration. The idea is to deprive the government of the financial resources it needs to provide for defence, healthcare and education. However, Lior warned that such actions could cause serious damage to the country’s economy as a whole, not just the government.

Auditor Reuven Schiff added that in the event of massive tax evasion, the state would be forced to take out loans, which would lead to higher interest rates and an increased debt burden on citizens. “This could trigger inflation and economic instability,” he said, adding that such initiatives have never succeeded in democratic countries.

Iris Stark, former head of the All-Israeli Association of Auditors, called Lapid’s call a direct violation of the law. “Public calls for a tax revolt are incitement to a criminal offence,” she stressed. Stark noted that employees cannot avoid paying taxes as they are withheld by their employer, while self-employed individuals (atzmai) who try to evade will face fines, interest on late payments and potential criminal prosecution.

The practical unreality of the idea

Experts unanimously agree that a “tax revolt” in Israel is virtually impossible to implement. For employees, taxes are automatically deducted from their salaries, and they have no direct control over this process. The self-employed, although they have more room for manoeuvre, will not be able to avoid paying for long without serious legal and financial consequences. “In the end, people will only make their situation worse by paying off their debts with interest,” Shif explained.

Stark also recalled that similar threats were made by the opposition in the summer of 2023 during protests against legal reform, but the idea did not find mass support then. “Rallies and demonstrations are a legitimate way to protest. Tax rebellion is a crime,” she concluded.

Conclusions.

Yair Lapid’s speech caused a wave of criticism due to its radical nature and legal dubiousness. Experts warn that calls for a “tax revolt” are not only illegal, but can also lead to economic destabilisation, which will primarily affect the citizens themselves. At the same time, the government has not yet officially responded to Lapid’s statement, but tensions between the government and the opposition continue to grow.

The situation remains under close scrutiny, and further steps by both sides will determine its development.

NEWS