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Livni opposes proposed tax on NGO donations from foreign governments

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Justice Minister Tzipi Livni said she would appeal a bill approved yesterday by the Ministerial Committee for Legislation which would scrap the tax-exempt status of donations from foreign governments to Israeli NGOs which breach certain criteria.

The legislation, proposed by Jewish Home MK Ayelet Shaked and Likud-Beitenu MK Robert Ilatov, aims “to reduce the involvement of foreign political entities in Israel’s democracy,” in the belief that such donations are used by NGOs  which lie “outside the Israeli democratic discourse and attempt to harm the basic characteristics of the State of Israel.” The bill would require 45 per cent in tax be paid on donations by foreign governments towards NGOs which call for IDF soldiers to be brought to international courts, call for boycotts, divestment or sanctions against the State of Israel or its citizens, incite to racism or support armed action against Israel. Shaked said the bill would tackle an “extremist minority” which “endangers the State of Israel.”

Ministers from Likud-Beitenu and Jewish Home supported the bill during yesterday’s vote, but ministers from Yesh Atid and Hatnuah voted against it. The legislation is expected to face a preliminary Knesset vote. Hatnuah leader and Justice Minister Tzipi Livni pledged to appeal the bill which she called populist and said “I will continue defending the status and strength of the IDF and our values as a Jewish and democratic state from dangerous legislation.” She commented that the proposed legislation is not patriotic, as “Israeli patriotism isn’t harming Israel as a Jewish and democratic state. It isn’t harming Israel’s international standing” which she believes the bill will do.

Meanwhile, Attorney General Yehuda Weinstein told the Cabinet committee that the bill will probably be declared unconstitutional by the High Court of Justice as it would “harm freedom of expression” and violate several of Israel’s Basic Laws. He said passing such legislation “is something done by a group of countries that it is doubtful if Israel wants to join.”