The Knesset's Finance Committee is set to debate whether to renew a tax exemption on fuel afforded to NGOs working with the Palestinian Authority and the Gaza Strip.
The exemption pertains to excise taxes on fuel – levies imposed on manufactured goods when they are produced rather than at the point of sale – and are similar to customs duties.
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These costs are currently imposed on Israeli taxpayers and account for a staggering 49% of fuel prices.
The Finance Ministry approved the exemption for several NGOs years ago and has not repealed it despite the fact that some of these organizations are engaged in anti-Israel activities, including calls for boycotts against the Jewish state.
Several right-wing groups learned of this recently and appealed to Likud lawmakers to change this policy.
Likud MKs Ofir Katz and Keti Shitrit have called on Finance Minister Israel Katz to pull the tax exemption. Committee Chairman MK Moshe Gafni (United Torah Judaism) supported the demand, prompting the Treasury to announce that it will do so.
The move will be presented for the committee's approval on Monday.
The right-wing advocacy group Im Tirtzu welcomed the decision, saying, "We applaud the members of the Knesset's Finance Committee for their adamant objection to the tax exemption afforded to anti-Israel groups."
Also on Wednesday, a Palestinian group promoting the global boycott of Israel lost its EU funding after refusing to renounced ties with Palestinian groups linked to terrorism.
Brussels informed Badil, which describes itself as "an independent, human rights non-profit organization committed to protect and promote the rights of Palestinian refugees and internally displaced persons," that it was suspending its €1.7 million ($1.9 million) annual donation to the organization for a period of three years.
This is the first time the EU pulled funding from a Palestinian NGO over its refusal to sever ties with terrorist groups.
The decision was made in accordance with new funding guidelines adopted by the EU in late 2019.
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