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Israeli Prime Minister Benjamin Netanyahu faces one of the most significant challenges to his power since October 7, after the country's Defence Minister publicly called for an end to controversial military service exemptions for ultra-Orthodox Jews.
Yoav Gallant said he would support a continuation of the long-standing policy only with the backing of two key centrist ministers, who joined Mr Netanyahu’s unity government after the outbreak of the Gaza war.
Mr Gallant’s comments come as the debate about the role of the country’s growing ultra-Orthodox community in modern Israeli life is becoming increasingly bitter.
Since Israel’s foundation, the community has been exempt from military service, even though it is compulsory for other Jewish groups and some minorities in the country.
There is also growing anger at the vast sums of public money spent on subsidies to allow ultra-Orthodox men to study in full-time religious schools.
Ultra-Orthodox parties, which remain committed to keeping their young men out of the military for religious reasons, make up a significant bloc within Mr Netanyahu’s ruling coalition. Their withdrawal from the government in anger at being forced to serve could topple his administration.
Mr Netanyahu’s government has only a matter of weeks to pass a new law for students of ultra-Orthodox religious schools not to be called up in the military draft.
Mr Gallant’s insistence that ministers Benny Gantz and Gadi Eisenkot would have to agree to extend exemptions makes it far harder for ultra-Orthodox parties to clinch such a deal.
In response to Mr Gallant’s announcement, an official of one ultra-Orthodox coalition party told Israel’s Kan news outlet: “If Netanyahu wants to still be in power by the summer, he’ll need to OK a draft exemption law.”
During a televised address, Mr Gallant said: “We cherish and appreciate those who dedicate their lives to learning the Torah. However, without physical existence there is no spiritual existence.
“Our security challenges demonstrate that everyone must bear the burden."
Mr Gantz and Mr Eisenkot are former military chiefs and represent voters who are often angry that the ultra-Orthodox do not serve in the military.
Mr Gantz welcomed Mr Gallant’s comments, saying: “All parts of Israeli society should take part in the right to serve. This is a security, national and social need.”
The issue of ultra-Orthodox service been the subject of much discussion within Israel in recent weeks, after the military announced plans to lengthen the tenure for mandatory recruits. The military also plans to raise the age at which reservists are freed from duty, prompting a number of politicians to call on the ultra-Orthodox to do more to help the war effort.
While some ultra-Orthodox Jews do serve in special branches of the armed forces, it is a tiny proportion within the fast-growing community, whose leaders still overwhelmingly encourage men to pursue full-time religious study over military service.
Community leaders have long feared that military life draws men away from the isolated community, significant swathes of which are non-Zionist, and its strict interpretation of Judaism.
The growing row is becoming one of the most politically divisive issues since October 7, after which many of Israel’s long-time internal debates were put on hold as the country came to terms with the worst attack on home soil in its history and rallied behind the war effort.
Ultra-Orthodox protesters clashed with police in Jerusalem on Monday over the issue.
Tales of Yusuf Tadros
Adel Esmat (translated by Mandy McClure)
Hoopoe
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Killing of Qassem Suleimani
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
COMPANY PROFILE
Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar
Based: Dubai, UAE
Founded: 2014
Number of employees: 36
Sector: Logistics
Raised: $2.5 million
Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE
RESULT
Aston Villa 1
Samatta (41')
Manchester City 2
Aguero (20')
Rodri (30')