An Israeli parliamentary committee has initiated discussions on a controversial law that proposes an 80% tax on non-governmental organizations (NGOs) primarily funded by foreign entities. This move aims to mitigate foreign influence within the country. The proposed legislation would bar these NGOs from petitioning Israeli courts, including the Supreme Court, although the finance minister has the authority to grant exemptions from the tax.
Organizations receiving state funding or with an annual income below 100,000 shekels (approximately $27,670) would be exempt from this tax. The debate within the Knesset’s Constitution, Law and Justice Committee has been intense and often divided along coalition lines. Ariel Kallner, the law’s proponent, argued that the legislation is essential to maintain a Jewish state and a democratic regime, asserting that foreign funds have been utilized primarily to sway Israeli policy through the media and judicial system.
Kallner noted that from 2012 to 2024, approximately 1.3 billion shekels were sent from overseas to 83 Israeli organizations, averaging about 300,000 shekels a day. He emphasized that the future of Israel must be determined by its citizens rather than foreign governments.
Opposition lawmakers voiced strong criticisms of the bill, claiming it aims to suppress dissenting voices, including those within the media. They suggested that if the government truly seeks to limit foreign influence, it should also consider regulating foreign business interests. Adalah, the Legal Center for Arab Minority Rights, along with nine other NGOs, has urged the committee to halt the proposed legislation, arguing it poses a direct threat to civil society and democracy in Israel.
Comments from various stakeholders and organizations underline the significance of this debate, as it reflects larger discussions about democracy, civil liberties, and the role of foreign influence in national affairs. The outcome of these discussions ultimately holds the potential to impact the landscape of Israeli civil society moving forward.
While the proposed law raises concerns about restricting civil society’s voice, the ongoing debate within the Knesset indicates an engaged legislative process where the implications of foreign influence are critically examined. This situation presents an opportunity for Israel to find a balanced approach that honors its democratic principles while addressing perceived external pressures.
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