Finance Committee Approves Tax Breaks for Hundreds of Non-Profit Organizations

The Knesset Finance Committee approved tax leniencies for hundreds of non-profit organizations on Wednesday, despite opposition from ultra-Orthodox members of Knesset. The approved breaks, granted under Section 46 of the Income Tax Ordinance, apply to organizations not directly funded by the state and operating in fields such as welfare, culture, religion, and health. To qualify for proper management approval, organizations must have two years of activity before applying for the tax benefits.

The committee's announcement noted the Attorney General's stance against including certain ultra-Orthodox organizations due to the military service status of their yeshiva students. Committee Chairman Hanoch Milwidsky proposed a compromise suggested by the Tax Authority director, offering temporary approval for three months followed by a discussion of the lists. However, this framework was not accepted by the Attorney General, leading to the vote on the organizations without the specific ultra-Orthodox groups.

Members of Knesset Moshe Gafni and Yitzhak Pindrus opposed the decision. A political debate ensued, particularly given the upcoming elections, but the committee ultimately approved the list of organizations.