Israel is facing increasing international pressure not to pass the Nonprofits Law in the Ministerial Committee for Legislation.
The bill, initiated by Likud MK Ariel Kallner, aims to limit the aid foreign governments and bodies provide to Palestinian Authority Arabs. If the bill passes, a nonprofit which receives a donation from a foreign government will not be recognized as a public institution or a nonprofit, and will be required to pay 65% tax on every donation. In addition, its donors will not be able to receive a tax credit for their donation.
Israeli Prime Minister Benjamin Netanyahu will hold an internal discussion on the matter on Sunday morning.
Meanwhile the French Embassy in Israel commented, "The draft of this bill is worrisome. We reaffirm our commitment to the crucial task of the civil society in the life of every democracy, in Israel and in the entire world. Countries are responsible to create and protect the space and environment appropriate for their work, since an active civil society can bring about a culture of peace and diversity."
Swedish Ambassador in Israel Erik Ullenhag tweeted, "A vital and strong civil society is crucial for every democracy. Therefore we are deeply concerned about the draft bill on NGO taxation - would severely limit Israeli civil society. As a friend of Israel I have raised, and will continue to raise the issue."