The Finance Ministry on Sunday denied reports that it would impose municipal property taxes on cemetery plots, saying that it was merely reinstituting the tax on burial societies.
Israeli media reported that family members would be required to pay tax on their family members' graves.
"If the cabinet passes the proposal, Israelis will find themselves paying arnona on their families' graves in addition to their homes and businesses," Globes wrote.
According to the Finance Ministry, however the 2013-2014 budget proposal eliminated a tax exemption for burial societies, which had been exempt since July 2010 at the initiative of MK Moshe Gafni, stripping local authorities of tens of millions of shekels in revenue.
The ministry would not comment, however, on where the burial societies would find the money, or whether they would simply pass the cost down to the consumer.