Knesset considers bill on 80% tax for NGOs with foreign funding – opposition raises alarm

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On Monday, 5 May, the Israeli parliament began discussing a high-profile bill that would impose an 80% tax on non-governmental organisations that are mostly funded from abroad. The initiators of the document argue that the law should limit foreign interference in domestic politics, but critics see it as a direct attack on civil society. This was reported by The Jerusalem Post.

According to the draft law, such NGOs will not have the right to file lawsuits in Israeli courts, including the Supreme Court. At the same time, the Minister of Finance will be able to grant tax exemptions at his discretion. Exemptions will apply to organisations that are funded by the state of Israel or have an annual income of less than 100,000 shekels (approximately $27,700).

The initiator of the bill, Ariel Kallner, said that between 2012 and 2024, NIS 1.3 billion was transferred from abroad to 83 organisations in Israel. According to him, these funds were not allocated for social or educational needs, but were used to “influence politics through the judiciary, media, and international arena.”

“This law will protect the Jewish state and the democratic system by stopping unacceptable foreign interference,” Kallner said.

However, opposition MPs criticised the initiative, accusing the government of trying to silence dissenters. Some parliamentarians stressed that it would be logical to extend the fight against foreign influence to companies.

A group of nine NGOs, including the Adalah Human Rights Centre, appealed to the head of the parliamentary committee to stop consideration of the bill. The open letter states that the document “is a direct attack on civil society, the rule of law and the democratic system of Israel”.

The meeting of the Constitution, Law and Justice Committee was tense and demonstrated the deep division between the coalition and the opposition. The law is being prepared for the first reading in the Knesset.

NEWS