Israeli Lawmakers Approve Tax Breaks for Hundreds of Non-Profits Amidst Debate

The Finance Committee of the Knesset, chaired by MK Hanoch Milvitzky, approved tax benefits for hundreds of social non-profit organizations on Wednesday. These organizations, which operate for public benefit and are not directly funded by the state, are eligible for these benefits under Section 46 of the Income Tax Ordinance. The approved organizations work in diverse fields including welfare, culture, religion, health, sports, science, education, settlement encouragement, and immigrant absorption.

During the discussion, several Haredi (ultra-Orthodox) MKs opposed the list of approved organizations. Their objection stemmed from the legal advisor's position that certain Haredi organizations were excluded due to the status of yeshiva students regarding military service. MK Yitzhak Pindrus expressed frustration over the late notice of the discussion, stating he was unaware of the agenda's specifics until shortly before the meeting and questioning the consensus-building process.

MK Naoor Shiri countered, accusing the Haredi MKs of hypocrisy and of holding other organizations hostage in the past. He highlighted that 110 "Avrechim" (married yeshiva students) organizations were on the list, urging them to stop claiming they were being targeted. Shiri noted that requests to approve Section 46 had been pending for six months, linking the delay to the unresolved conscription law.

Committee Chairman Milvitzky clarified that the issue was not about organizations violating the law but a sweeping directive from the Attorney General's office to halt approvals for nearly all Haredi organizations. He mentioned an attempt to provide a temporary three-month approval, which was rejected by the Attorney General's office. Milvitzky stated that not all excluded organizations are lawbreakers and that the legal counsel's office had not provided clear reasons for the delays.

MK Moshe Gafni argued that the Tax Authority was providing lists of eligible organizations, but the Attorney General had issued a blanket directive to exclude yeshivas without individual assessment. He criticized this as an illegal and arbitrary decision by a single individual, demanding adherence to legal criteria and questioning the Prime Minister's involvement. MK Michal Waldiger supported approving the other organizations while acknowledging the separate issue.

Coalition Chairman MK Ofir Katz agreed with the criticism of the Attorney General, accusing her of targeting the right and Haredim. He emphasized the need to assist the hundreds of organizations, including those supporting bereaved families and IDF veterans, without playing into the Attorney General's hands. MK Orit Farkash Hacohen pointed out that some organizations were disqualified due to links with draft dodgers, but argued this should not delay funds for others, such as those supporting combat stress victims.

Despite the opposition from Haredi MKs, the lists were ultimately approved. The committee's legal advisor, Shlomit Erlich, acknowledged the delay in processing the lists and the unusual timing of the discussion, but stated the meeting was postponed to allow members to prepare.