Adalah to Prime Minister and Attorney General: Stop Proposed 35% Tax Exemption on Donations to Settlements

     (Haifa, Israel) On 15 February 2012, Adalah sent a letter to the Prime Minister, the Attorney General, and the Minister of Justice demanding that they halt a proposed new law that will grant a 35% tax exemption on donations to institutions that promote 'settlement.' The governmental Ministerial Committee for Legislation approved the suggested law last week after Likud Knesset members, Zeev Elkin and Zion Pinyan proposed it. The Knesset later confirmed the bill in a pre-reading.

Adalah Attorney Sawsan Zahar, who prepared the letter, argued that the proposed law differentiates between public institutions on political and ideological grounds, contradicting the designation of tax benefits to serve social goals such as promoting education, culture and religion. This proposed distinction infringes on the principle of equality between public institutions, regardless of their basis of work. In fact, this benefit will apply to institutions that promote the establishment or expansion of settlements in East Jerusalem and the West Bank, which in and of itself, is extremely controversial among the Israeli public. Thus, providing these benefits via a tax exemption is based on a political perspective rather on relevant social and cultural goals. Attorney Zahar added that "favoring public institutions solely based on their political activities will give those institutions broader privileges. These benefits will not be provided equally to other institutions that are promoting educational and cultural goals. This limitation will necessarily lead to the infringement of the rights to freedom of expression and opinion." Adalah also argued that the proposed law will also lead to violating the rights to freedom of association.

Accordingly, Adalah asked the government to withdraw its support for the bill and to halt any further readings in the Knesset.

For more information, see:
http://www.haaretz.com/news/national/israel-to-mull-tax-exemptions-on-donations-to-zionist-settlement-1.412036