Government Presses Opposition for Support on Food Voucher, Meron Funding Ahead of Election
With Israel’s election approaching, the government is pressing opposition lawmakers to support a series of imminent budget votes involving funding for Shas-associated food vouchers, the annual Lag Ba’omer gathering in Meron and preparations for the national election.
According to a report in TheMarker, the government is seeking opposition support for a transfer of NIS 101 million to the Interior Ministry. Among the items included in the request is NIS 12.8 million needed to help finance preparations for the election scheduled for late October. Israel’s Central Elections Committee is already carrying out logistical preparations for the vote, including shipping ballot materials to Israeli missions around the world.
The election-related money is intended in part for management of the voter registry and the distribution of voter notifications. The request also includes NIS 42 million for the five-year development program for Druze and Circassian communities covering the years 2025 through 2029.
At the center of the political dispute, however, are two additional allocations. One is NIS 37 million earmarked for the food-voucher program closely associated with Shas chairman Aryeh Deri. Another NIS 46 million is being sought to cover expenses connected with the annual Lag Ba’omer gathering in Meron, including payments to suppliers through the Ministry of Jerusalem Affairs and Jewish Tradition.
The dispute is unfolding alongside a separate battle involving Section 46 of Israel’s Income Tax Ordinance, which provides tax benefits to donors who contribute to qualifying nonprofit organizations.
According to the report, chareidi parties have been blocking approval of Section 46 status for hundreds of organizations after the benefit was denied to certain chareidi nonprofits on the grounds that they encourage avoidance of IDF service. In response, the chareidi parties imposed a veto on granting the benefit to other organizations awaiting approval.
That standoff has now become intertwined with another urgent matter being advanced by the Finance Ministry.
The ministry has asked the Knesset Finance Committee to quickly approve Israel’s Pillar Two regulations, which are designed to ensure a minimum 15% tax rate for large multinational corporations in accordance with the international framework developed through the OECD.
According to the report, Israel must approve the regulations before the end of the year or risk sanctions. Opposition representatives, however, have informed Finance Minister Bezalel Smotrich’s office that they will not permit consideration of the regulations as long as the chareidi parties continue blocking Section 46 tax benefits for nonprofits.
The disputes come during the final stretch of the election campaign, with the Central Elections Committee already deep into preparations for voting. Last week, election officials began dispatching ballot boxes and other materials to 99 Israeli diplomatic missions in 79 countries, 42 days before Election Day.
The coming votes are therefore expected to test whether the government and opposition can reach agreements on the various funding requests, with election preparations, the food-voucher program, Meron funding, nonprofit tax benefits and the multinational corporate tax regulations all caught up in the broader parliamentary standoff.
