Tax Breaks for Charities Approved Amidst Haredi Protest

The Knesset Finance Committee approved tax benefits for hundreds of charities on Wednesday, following a heated debate. Haredi (ultra-Orthodox) lawmakers protested the exclusion of Torah institutions from the approved lists, linking it to the issue of drafting yeshiva students. Committee Chairman Chanoch Milvitzky acknowledged that the delays were not solely due to institutions violating the law, stating that a temporary solution proposal was not approved by the Attorney General.

The tax benefits, granted under Section 46 of the Income Tax Ordinance, are for charities operating for public purposes in welfare, religion, health, education, culture, sports, science, settlement, and immigration absorption. MK Moshe Gafni argued that institutions were broadly removed from the lists without individual eligibility assessments, claiming the Tax Authority confirmed that even applications submitted two years prior had not been reviewed. "The Attorney General gave a sweeping directive to remove anything called a yeshiva, without checking, without knowing if the institution is eligible or not," Gafni stated, demanding a legal basis for the distinctions made.

Milvitzky explained that the head of the Tax Authority had agreed to a temporary three-month approval, during which charities would need to submit documents, with disqualification for those failing to comply. However, he noted this plan was not accepted by the Attorney General, "without justification." Milvitzky asserted that not all delayed institutions were lawbreakers, and that the issue could have been resolved sooner.

Gafni reiterated his support for approving eligible charities but opposed doing so while excluding others without clear criteria, calling the situation "a severe blow to democracy." Another point of contention was the short notice for the meeting, with MK Yitzhak Pindrus complaining he was prepared for budget discussions and only learned of the charity benefits agenda shortly before. The committee's legal advisor, Shlomit Erlich, confirmed the unusual short notice but explained the lists had been delayed since July and significant effort was made by both coalition and opposition to advance their approval.

Coalition Chairman Ofir Katz joined the criticism of the Attorney General but urged approval to avoid harming the approximately 900 charities, including those supporting bereaved families and IDF veterans. MK Michal Waldiger supported approving the listed charities while continuing the fight for those excluded, viewing them as separate battles. Conversely, MK Naor Shiri claimed the lists included 110 "kollel" (post-graduate yeshiva student) charities and accused opponents of delaying approvals. MK Orit Farkash Hacohen suggested the disqualifications stemmed from cross-referencing names of draft evaders with the charities. Gafni rejected the claim of individual review, and Milvitzky stated there was no basis to assume all delayed institutions were violating the law. A missionary organization was removed from the lists at Gafni's request. Ultimately, the remaining lists were approved despite Haredi MKs' opposition.