The Ministerial Legislation Committee on Wednesday approved a bill to cancel tax breaks on donations to NGOs dedicated to maligning Israel’s reputation.
The bill, submitted by MK Bezalel Smotrich (Habayit Hayehudi), removes the legal tax break of up to 35% of the value of the donation to an NGO that acts “against the State of Israel.” The bill defines its targets as any “public institution which issues publications accusing the State of Israel of committing war crimes, as well as a public institution which participate in a call to boycott Israel.”
The new bill, which amends Israel’s income tax law, was endorsed by 26 MKs from all the coalition parties.
“The citizens of Israel should not be obligated to finance out of their own pockets activities which aren’t carried out with their agreement,” according to the explanation notes that accompany the new bill. “Naturally, they may do so out of their own free will, but they cannot be forced to do it via the government’s tax system.”
“It is proposed to enshrine in law the requirement for the public aim of a public institution would be directly linked to the citizens of Israel or the Jews in diaspora,” the bill’s explanation continues, adding, “This way the State of Israel would reflect its commitment to diaspora Jews around the world.”
The Israeli Democracy Institute (IDI) sent its opinion to the ministerial committee suggesting the proposed bill comprises a “vague definition with clear political element.”