Israel Debates 80% Tax on Foreign-Funded NGOs

Israeli lawmakers have begun debating a controversial bill that would impose an 80% tax on NGOs receiving the majority of their funding from foreign political entities and bar such organizations from petitioning Israeli courts, including the Supreme Court. Proponents argue the legislation is necessary to curb improper foreign interference in Israeli affairs and preserve the country's democratic and Jewish character, citing significant sums received by NGOs from abroad in recent years. The bill includes exemptions for groups funded by the Israeli government or with annual revenues below a specified threshold, and gives the finance minister authority to grant further exemptions. Supporters claim the funds in question are used to influence Israeli policy through legal and media channels, rather than for social or educational development. Critics, however, warn the law would undermine civil society, democratic accountability, and stifle dissenting voices, with several NGOs urging that the legislation be halted. The heated debate in the Knesset’s Constitution, Law and Justice Committee reflects deep divisions over the bill, which must pass several readings to become law.