Knesset Finance Committee Approves Tax Breaks for NGOs, Excluding Haredi Groups
Translated & summarized from NEWSru Israel by baba
The Knesset Finance Committee approved tax benefits for hundreds of non-profit organizations, excluding ultra-Orthodox groups due to a legal advisor's objection regarding yeshiva students' conscription status. Despite a proposed compromise, the exclusion stood after the legal advisor disagreed. The approved benefits, under Section 46, apply to organizations in various sectors that meet operational and management criteria.
The story in 6 lines · by baba
- Knesset Finance Committee approved tax benefits for hundreds of NGOs, excluding Haredi groups.
- Legal Advisor Gali Baharav-Miara opposed Haredi NGO inclusion due to yeshiva students' conscription status.
- A compromise proposal for a three-month temporary permit was rejected by the legal advisor.
- MKs Moshe Gafni and Yitzhak Pindrus opposed the exclusion but were outvoted.
- The approved tax benefits are granted under Section 46 of the Income Tax Ordinance.
- Eligible organizations must operate for two years and demonstrate proper management.
The Knesset Finance Committee has approved tax exemptions, known as "Section 46" benefits, for hundreds of non-profit organizations. However, ultra-Orthodox (Haredi) NGOs were excluded from this approval following a directive from the government's Legal Advisor, Gali Baharav-Miara. According to Globes, Baharav-Miara opposed the inclusion of certain Haredi organizations due to the ongoing issue concerning the military conscription status of yeshiva students.
Committee Chairman Hanoch Milvitsky stated that the head of the Tax Authority proposed a three-month temporary permit for these organizations, with further discussion to follow. This compromise was rejected by Baharav-Miara, leading to the vote proceeding without the Haredi organizations.
Members of Knesset Moshe Gafni and Yitzhak Pindrus opposed the decision but were outvoted. The approved tax benefits fall under Section 46 of the Income Tax Ordinance and apply to organizations not receiving direct government funding, operating in areas such as social welfare, aid to the needy, culture, religion, and health.
To qualify for these benefits, an organization must have been operating for two years and demonstrate proper management before applying for the tax exemptions.
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