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Israel’s Attorney General Moves to Strip Donor Tax Breaks From Yeshivas Linked to Draft Evasion

The step uses donor tax credits to pressure yeshivas on military draft compliance.

Overview

  • The attorney general ruled that yeshivas with draft‑age students who do not report for service will no longer qualify their donors for Section 46 tax credits.
  • Section 46 grants income‑tax credits to encourage gifts to public institutions, so removing it for flagged yeshivas could cut a major stream of private support.
  • Reports say the Israel Tax Authority will prepare a list of affected institutions and use new online donation reporting to block credits at the source.
  • Haredi leaders Moshe Gafni and Yitzhak Goldknopf condemned the move as ideological persecution and urged Prime Minister Benjamin Netanyahu to intervene.
  • Government sources warn the change could deter billions of shekels in annual donations, with a state reply to an Israel Chofsheet petition expected by the end of May.