Jerusalem // Israel’s parliament was expected last night to dissolve itself and hold elections next year as fears grow the next government will take an even harder line against Palestinian peace talks and the rights of the country’s Palestinian citizens.
Prime minister Benjamin Netanyahu called for elections last week after his coalition collapsed just two years into its term.
During that time Palestinian talks disintegrated, Israel launched a seven-week attack on Gaza, violence in Jerusalem and the West Bank spiked and the government backed the continued expansion of Jewish settlements on occupied Palestinian territory.
The collapse of the government came after months of disagreements within the coalition primarily over the 2015 budget and defence spending but also over attempts to introduce a law that declared Israel a Jewish state. The draft legislation would reserve national rights to Jews alone and threatened to further alienate and infuriate the country’s Palestinian minority.
Mr Netanyahu presented his finance minister Yair Lapid of the centrist Yesh Atid party with a list of demands during a fiery meeting on December 1 to which he could not agree.
Mr Netanyahu’s conditions included a freeze on Mr Lapid’s plan to cut tax for first-time homeowners and support for the “Jewish state” bill that, if passed, would formally make Palestinians, comprising 20 per cent of the population, second-class citizens.
The collapse of the government paves the way for a new coalition with more right-wing parties.
“A more radical right-wing government could see the Jewish Home party becoming the second largest at the Knesset, in addition to a takeover by pro-settlement parties which will determine the future of negotiations, the peace process and the kind of solution they envision with the Palestinians,” said Palestinian foreign minister Riyad Al Malki.
Jewish Home is an ultra-right wing party opposed to the creation of a Palestinian state.
In his attempt at a fourth term, many believe Mr Netanyahu will be looking to build a coalition with former allies far more supportive of the expansion of settlements in Israeli-occupied East Jerusalem and the West Bank.
Devoid of the more moderate parties, such as Hatnua and Yesh Atid, the next governing coalition is poised to be the most right-wing in recent history, especially if it attracts more ultranationalist members.
Danny Danon, the chairman of Mr Netanyahu’s Likud party, suggested as much last week. “After the Likud is victorious at the ballot box, we must be sure not to repeat mistakes of the past and form the next coalition government with loyal and like-minded parties that are interested in serving as true partners in leading our great country,” he said.
Since the elections were called for last week, Mr Netanyahu and Mr Lapid have traded barbs, the latter accusing the premier of dragging the country through needless elections — slated to cost 2 billion shekels ($505 million).
Pre-election political manoeuvring has already begun, with ultra-orthodox parties, which were kept out of the coalition that followed the 2013 elections, making plans to find a way back to power.
“Netanyahu prefers a deal with the ultra-Orthodox parties to bring about early elections above the interests of the wider Israeli public,” Mr Lapid said.
Mr Netanyahu had wanted Mr Lapid and Justice Minister Tzipi Livni, to agree to the “Jewish nation state” bill. But both centrist coalition partners grew increasingly critical of the proposed law in recent weeks. They were fired a day after meeting between Mr Netanyahu and Mr Lapid.
It is unlikely that the Palestinian-Israeli conflict will be a defining factor in the upcoming elections. Israelis’ concerns over security — following a spate of stabbing and hit-and-run attacks — could, however, affect Mr Netanyahu’s chances.
Other observers suggest that Mr Netanyahu’s path to another term as prime minister is not straight forward.
“Right now it looks as if Netanyahu will remain in power, but there are certainly other possibilities,” Natheer Mjali, a Palestinian expert on Israeli affairs said. “Netanyahu has failed in managing Israeli affairs at all levels — politically, economically, security and service-wise. This is what his opposition will focus on and if they can convince the people, he may very well fall.”
foreign.desk@thenational.ae
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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Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
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The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
More from Janine di Giovanni
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
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Other must-tries
Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
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Director: Rupert Wyatt
Rating: 3/5