Knesset Finance Committee Delays Tax Benefits for Haredi-Linked Charity Supporting Netiv HaAsara Recovery

The Knesset Finance Committee has delayed granting tax benefits to a charity from the Netiv HaAsara moshav, which was severely affected by the October 7 attacks and is currently raising funds for rehabilitation. This move follows a broader freeze on tax benefits for approximately 250 charities, including those assisting war casualties, amid political pressure from Haredi parties. The Finance Committee has not advanced the tax benefit recommendations from the Israel Tax Authority for these organizations to a vote or approval stage.

About a month ago, the Tax Authority submitted a list of charities that met the criteria for tax benefits to the committee. However, it is simultaneously withholding review of around 100 additional charities suspected of subsidizing draft evaders, rendering them ineligible for benefits. Consequently, the committee has refrained from voting on the approved charities.

Last weekend, the Tax Authority initiated a process to revoke tax benefits from yeshivas suspected of supporting draft evaders, potentially involving tens of millions of shekels annually. The authority demanded these yeshivas declare they do not enroll draft evaders and provide student lists for cross-checking with the military. This development is part of ongoing tensions surrounding the allocation of tax benefits to Haredi institutions amid concerns over military service evasion.