MK Moshe Abutbul Demands End to “Selective Enforcement” Against Torah Institutions
Shas MK Moshe Abutbul has called on Finance Minister Bezalel Smotrich to immediately halt what he describes as discriminatory enforcement by the Israel Tax Authority against yeshivos, Torah institutions, and Chareidi nonprofit organizations, arguing that they are being singled out while left-wing groups accused of far more serious conduct continue to enjoy government tax benefits.
In a sharply worded letter sent Tuesday under the title, “Demand to End Selective Enforcement Against Torah Institutions and Restore Equality Before the Law,” Abutbul urged the finance minister to intervene in what he characterized as an unjust and politically motivated policy.
Copies of the letter were also sent to Finance Ministry Director-General Israel Malachi, Israel Tax Authority Director Shay Aharonovich, Knesset Finance Committee Chairman MK Chanokh Milwidsky, and B’Tzalmo CEO Shai Glick.
Abutbul warned that recent actions by the Tax Authority against Torah institutions and Chareidi nonprofit organizations have raised serious concerns about unequal enforcement and have undermined public confidence in the fairness of government agencies.
At the center of his complaint is the revocation of tax benefits granted under Section 46 of Israel’s Income Tax Ordinance, which allows donors to receive tax credits for contributions to approved nonprofit organizations. According to Abutbul, Torah institutions are facing severe financial penalties—including the loss of this critical designation—because of claims relating to the personal legal status of some of their students.
He argued that while the Torah world is being subjected to strict enforcement, the government has taken a far more lenient approach toward other organizations accused of significantly more serious conduct.
As a prominent example, Abutbul pointed to several left-wing civil society organizations that continue to hold Section 46 tax-exempt status despite publicly expressing solidarity with Al-Haq, a Palestinian organization that was designated a terrorist organization by Israel’s defense minister in 2021 because of its alleged ties to the Popular Front for the Liberation of Palestine. He also noted that the organization has been sanctioned by the U.S. government.
Abutbul further wrote that these same organizations have published reports accusing Israel of committing “genocide” and systematically harming Gaza’s healthcare system, yet have faced no loss of tax benefits or other enforcement measures.
The letter emphasizes that Section 46 status serves as a financial lifeline for nonprofit organizations by encouraging charitable giving. According to Abutbul, stripping Torah institutions of that status severely damages their ability to support bnei Torah and maintain their educational operations.
He questioned why the Torah community has become the primary target of economic sanctions while organizations that, in his view, support groups designated as terrorist organizations or damage Israel’s international standing continue to operate without consequence.
Abutbul also warned that unequal enforcement erodes public trust in the rule of law and raises concerns that the decisions are being driven by political considerations rather than objective administrative standards. He argued that if the government believes the conduct or legal status of individuals associated with an institution justifies sanctions against the institution itself, then that principle should be applied equally to all organizations without exception.
He specifically asserted that the same standard should also apply to universities and academic institutions where students fail to comply with legal obligations, including the potential loss of government funding, tax benefits, and Section 46 eligibility.
Abutbul concluded by urging Smotrich to take three immediate steps: review the Tax Authority’s enforcement policy toward Torah institutions to ensure it is not discriminatory; suspend any sanctions that are not being applied equally across all sectors; and publish clear, uniform, and transparent guidelines governing how the Tax Authority exercises its authority over nonprofit organizations and public institutions.
He closed his letter by stating that genuine rule of law requires equal treatment for every institution regardless of political views or sectoral affiliation, and called on the finance minister to intervene immediately and conduct a thorough review of the matter.
{Matzav.com}
