March 5, 2025
HRRC supports the NGOs affected by Israel's latest tax bill, which effectively cuts off all foreign funding assistance to those organizations. Many of these targeted NGOs promote and protect human rights and are extremely important during the ongoing conflict with Palestine, Gaza, and the West Bank. Israel must eliminate the tax bill and allow all NGOs to operate freely once again.
![The Knesset building, home of Israel's legislature [Image credit: Marc Israel Sellem/The Jerusalem Post]](https://static.wixstatic.com/media/e28a6b_673719777951427fad10e244fa4b9a31~mv2.png/v1/fill/w_822,h_537,al_c,q_90,enc_avif,quality_auto/e28a6b_673719777951427fad10e244fa4b9a31~mv2.png)
The Israeli government is once again targeting civil society organizations with a controversial bill that seeks to impose an 80% tax on NGOs receiving foreign state funding while stripping them of their right to file lawsuits in Israeli courts. The bill, proposed by Likud MK Ariel Kallner, was approved by the ministerial committee on legislation, signaling a serious threat to human rights advocacy in Israel and the occupied territories.
This is not the first time such a measure has been introduced. In 2023, Kallner proposed a similar bill, which was ultimately withdrawn by Prime Minister Benjamin Netanyahu following intense criticism from Israel’s allies, including the United States. That version of the bill called for a 65% tax and no tax exemptions for foreign-funded civil society organizations.
The new proposal extends even further, applying to NGOs that do not receive Israeli state funding, with exceptions only at the discretion of the Knesset Finance Committee. The Association of Civil Rights in Israel has condemned the bill as a targeted attack on left-leaning civil society organizations, while right-wing groups benefiting from private foreign donations remain untouched.
Though the bill claims its purpose is to limit the “indirect influence of foreign governments and political entities” on Israel, its true intent appears to be silencing organizations that expose the government's human rights violations—particularly against Palestinians and other minority groups. If passed, this law would effectively cripple many local human rights groups, forcing them to shut down due to financial constraints. This impact would be felt not only in Israel but also in the West Bank, where such organizations play a crucial role in monitoring abuses.
Champion of Minority Rights or Chess Master in Geopolitics?
Many in the right-wing government view these foreign funded NGOs as undermining national interests and interfering with Israel’s sovereignty. Yet, the hypocrisy is evident. Just this week, Netanyahu ordered the Israeli Defense Forces (IDF) to “prepare to defend” Druze communities in Syria amid clashes between Druze gunmen and the Syrian government. Defense Minister Israel Katz declared, “We will not allow the extreme Islamic regime in Syria to harm the Druze. If the regime harms the Druze, it will be struck by us.” While Israel claims to defend minority groups abroad—such as the Druze and Kurds—it actively suppresses civil society organizations that advocate for minorities within its own borders. It would also be good to note, the Druze are located in the southwestern part of the country and Israel was quick to capture a southern Syrian buffer zone in between the two countries after the fall of the Assad dictatorship citing it’s move as a defensive measure.
HRRC calls on the Israeli government to withdraw the bill once again and allow civil society organizations to operate freely. If the government insists on cutting off foreign funding, then it must take responsibility for financially supporting these organizations to ensure their continued work in defending human rights.
Glossary
Buffer Zone – A neutral area between two opposing forces or countries, often established to prevent conflict.
Civil Society Organizations (CSOs) – Non-governmental groups that advocate for social, political, and human rights issues, working to hold governments accountable.
Constraints – Limitations or restrictions that prevent actions or development.
Discretion – The freedom to decide or act according to one's own judgment.
Exemptions – Special permissions that allow individuals or organizations to avoid certain laws, rules, or taxes.
Geopolitics – The study of how geography, politics, and international relations influence global power dynamics.
Hypocrisy – The act of pretending to have moral standards or beliefs while behaving in a way that contradicts them.
Ministerial Committee – A group of government ministers responsible for discussing and approving legislation before it reaches the full parliament.
NGOs (Non-Governmental Organizations) – Independent, non-profit organizations that work on humanitarian, development, or advocacy issues.
Punitive – Intended as punishment or meant to be excessively harsh.
Sovereignty – The full right and power of a country or government to govern itself without external interference.
Suppresses – To forcibly prevent, control, or silence something, such as opposition or free speech.
West Bank – A landlocked territory in the Middle East, located between Israel and Jordan, that has been a focal point of the Israeli-Palestinian conflict.
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