The Finance Committee is expected to discuss and approve tomorrow (Monday) the request of Finance Minister Israel Katz to amend a temporary order, according to which international aid organizations in the Palestinian Authority will receive an exemption from VAT on fuels. This is a benefit that charitable and social organizations in Israel do not receive.
In a letter sent by Minister Katz to Finance Committee Chairman Moshe Gafni, the minister requested that the Finance Committee approve a temporary provision in the Value Added Tax regulation, so that the exemption from VAT on fuels would be extended for about a year and a half, until the end of 2021. "In order to continue the purchase of fuel with zero VAT by international aid organizations, similar to the aforementioned arrangement regarding excise duty, it is proposed to extend the regulations for an additional year and a half.".
Palestinian aid organizations are also exempt from excise duty, which is estimated at approximately 49% of the cost of fuel. Along with the exemption from VAT, Palestinian aid organizations are also eligible for a discount of over 60% off the price paid by social and charitable organizations in Israel, like all Israeli citizens.
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MK Bezalel Smotrich from the right attacked Minister Katz's request on his Twitter account, declaring that he would come to the Finance Committee tomorrow to "fight against this foolishness.".
In addition, Smotrich called on coalition members to oppose the move as well.
The 'Choose Life' forum and the 'Lavi Organization' attacked the intention to grant zero VAT to PA aid organizations: "Unfortunately, the Israeli government chooses again and again to grant the Palestinian Authority and its affiliated organizations gifts and treats that are not given to Israeli citizens. It is unacceptable that Palestinian aid organizations will repeatedly receive benefits that are not given to Israeli aid organizations. We call on elected officials to stop the grab.".
The "My Israel" movement called the move "the government's heartlessness" and said: "It is impossible that while Israeli charitable and aid organizations that assist the population in Israel are collapsing under the burden of the coronavirus, organizations that assist Palestinians are receiving a discount of about 60 percent on the purchase of fuel in Israel. The Israeli government is demonstrating heartlessness and discriminatory selective benefits towards Israeli charitable organizations, and is giving free gifts to organizations whose effectiveness is not at all clear.".
