Jerusalem May 6 2025: An Israeli parliamentary committee on Monday began debate on a law that would impose an 80% tax on non-government organisations that receive the majority of their funding from foreign entities in a bid to reduce foreign influence on the state.
Under the proposed law, these NGOs would not be able to petition Israeli courts, including the Supreme Court. Israel’s finance minister, though, would be able to grant an exemption from the tax.
Organisations funded by the Israeli state and those with an annual turnover of below 100,000 shekels ($27,668.64) would be exempted.
The debate in the Knesset’s Constitution, Law and Justice Committee was at times heated and divided along coalition lines. The panel is preparing the bill for a first reading in the main plenum.
“This law will preserve a Jewish state and a democratic regime, and will block improper foreign interference,” said Ariel Kallner, the bill’s sponsor, during the debate.
Kallner noted that between 2012 and 2024, 1.3 billion shekels was transferred from overseas to 83 Israeli organisations, or an average of about 300,000 shekels per day.
