Israel Approves Tax Breaks for Hundreds of Nonprofits Amid Haredi Opposition

The Knesset Finance Committee, chaired by MK Hanoch Milvitzky, approved tax benefits for donors to hundreds of public associations and organizations on Wednesday. The decision faced strong opposition from Haredi (ultra-Orthodox) lawmakers, who argued against the exclusion of certain Haredi organizations from the list. The controversy stemmed from a decision by the Attorney General's office not to include some Haredi organizations due to their alleged ties to individuals considered draft dodgers from the IDF.

Haredi MKs denounced this as an unjustified blanket disqualification and demanded the lists not be approved until the criteria were clarified. The tax breaks, granted under Section 46 of the Income Tax Ordinance, allow donors to eligible organizations to receive tax credits. The approved list includes approximately 900 organizations across various sectors like welfare, education, health, culture, religion, sports, immigrant absorption, and settlement encouragement, according to Coalition Chairman MK Ofir Katz.

The committee meeting was delayed for an extended period due to sharp disagreements between Haredi factions and other coalition and opposition members. Haredi MKs suggested a deal between the coalition and opposition was made to approve other organizations while excluding the Haredi ones. Organizations themselves reportedly lobbied for consensus, and Prime Minister Benjamin Netanyahu personally intervened to convene the discussion.

MK Moshe Gafni fiercely criticized the Attorney General's office, claiming a sweeping directive was issued to exclude yeshivas without proper vetting. He argued that applications have been delayed for two years without proof of ineligibility. Other MKs, like MK Orit Farkash-Hacohen, countered that organizations were excluded after cross-referencing names of draft dodgers with associated groups, and MK Naor Shiri accused Haredi parties of holding other organizations hostage.

Despite the Haredi opposition, the lists were approved. MK Michal Waldiger urged approving the other organizations separately, calling it two distinct battles. Coalition Chairman Ofir Katz denied coordinating the vote with the opposition but criticized the Attorney General for causing suffering to beneficiaries of these organizations. The meeting itself faced criticism for being scheduled on short notice, though the committee's legal advisor confirmed the decision was made due to prolonged delays.