Israel Hayom has learned that European nations are preparing potential retaliatory measures against an Israeli bill that would impose an approximately 80% tax on foreign government donations to Israeli NGOs, creating diplomatic tension that could escalate into an "international donation war." The proposed legislation, championed by Knesset member Ariel Kallner and currently advancing through the Knesset, targets organizations predominantly on the political left, such as B'Tselem and Breaking the Silence, but diplomatic sources warn that the consequences could extend to Jewish communities worldwide through reciprocal taxation policies.
Several European countries – including Germany, the Netherlands, and other European Union nations – are examining parallel measures in response to the law, according to diplomatic sources. These countries have been investing millions in the West Bank for years, much to the displeasure of the Israeli right, as well as in organizations considered controversial in Israeli public discourse.
The new law is generating significant concern among these NGOs. In many cases, the organizations rely predominantly on money from various foreign countries to fund their operations. A notable example includes organizations that defend terrorists in Israeli courts and file petitions to the Supreme Court. For instance, 90% of the budget of HaMoked - Center for the Defense of the Individual comes from abroad.
"A boomerang that will harm Jewish communities"
The countries, angered by the decision to prevent donation opportunities, are considering imposing an identical tax on donations from Israel to NGOs abroad. According to various sources, "The law's initiators presented it as something that would prevent foreign interference and domestic subversion, but now they may face a boomerang that will harm Jewish communities worldwide."
Such a donation war, diplomats warn, could damage not only NGOs in Israel but also Jewish communities in the diaspora. Institutions such as Jewish schools, community centers, and Zionist organizations, which sometimes rely on donations from Israel, may encounter tighter regulations, bureaucratic delays, or even new taxes.
