Israel mulls imposing restrictions on foreign funding for NGOs

The Israeli government is considering a bill aimed at imposing restrictions on foreign funding for NGOs, local media reported yesterday.

According to media reports, the bill states that any nonprofit group that engages in public advocacy two years before or after receiving a donation from a foreign government will lose its status as a public institution and will no longer be eligible for tax exemptions. In addition, those non-profits will be hit with a 65 per cent income tax.

The reports indicated that many organisations in Israel and the Palestinian territories depend on foreign funding, and the proposed bill could severely impact their ability to operate.

The legislation, drafted by a member of Prime Minister Benjamin Netanyahu’s Likud Party, Ariel Kallner, is set to be brought before the Knesset’s high-level Ministerial Committee for Legislation on Sunday.

Kallner said the goal of the tax is to “prevent foreign interests from gaining the upper hand.”

Kallner accused European countries of deliberately undermining Israel’s interests through their financing activities.

READ: Israel to impose 65% tax on human rights groups critical of the occupation state