President Biden and PM Netanyahu
President Biden and PM NetanyahuAmos Ben Gershom/GPO

Prime Minister Benjamin Netanyahu has reportedly agreed to shelve the Nonprofits legislation, which aims to limit the aid foreign governments and bodies provide to Palestinian Authority Arabs, following increasing international pressure.

According to a report by Galei Tzahal's Yanir Cozin, a significant part of that pressure came from members of the Biden administration, who presented Netanyahu with an ultimatum.

According to the report, the White House made it clear to the Prime Minister that if he is interested in a meeting with President Biden and assistance in advancing normalization with Saudi Arabia, he would need to shelve the legislation that would harm civilian organizations immediately.

Netanyahu, who has been working hard to score a meeting with the US President and is aware of the vitality of American assistance in normalizing ties with the Saudis, had no choice but to capitulate to the American demands.

As reported, according to the bill initiated by Likud MK Ariel Kallner, 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 a 65% tax on every donation. In addition, its donors will not be able to receive a tax credit for their donations.

In addition to the Americans, several European governments vocally opposed the bill.

The French Embassy in Israel commented, "The draft of this bill is worrisome. We reaffirm our commitment to the crucial task of 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."