Knesset Finance Committee Set to Weigh Section 46 Approvals Ahead of Elections
The Knesset Finance Committee is set to vote on budget transfers and Section 46 tax benefits for non-profit associations, sparking a coalition crisis over combat trauma groups and ultra-Orthodox entities.
The Knesset Finance Committee will convene on Wednesday to approve budget transfers less than six days before the elections. The coalition is pushing to include the approval of Section 46 for non-profit organizations on the agenda. This involves hundreds of associations awaiting approval, including combat trauma support groups, which Likud is keen to approve before the elections.
However, MK Moshe Gafni (United Torah Judaism) and Ynon Azoulay (Shas) strongly oppose the move because it excludes organizations that encourage draft evasion. The approval has been delayed for a long time after the Attorney General ruled that tax benefits cannot be granted to associations encouraging draft evasion, prompting the Tax Authority director to remove ultra-Orthodox associations from the list.
An emerging compromise involves approving only the combat trauma associations while excluding all others. Despite the opposition from ultra-Orthodox allies, Likud could secure a majority by cooperating with the opposition, leaving the party facing a political dilemma over whether to risk its coalition partnership.
