Finance Minister Bezalel Smotrich stated Thursday morning his intention to sign three orders, which state that the tax benefits UNRWA receives due to its status as a UN agency will be canceled.
"The State of Israel will not give tax benefits to terrorist aides," Smotrich wrote on X on Thursday.
מדינת ישראל לא תתן הטבות מס לסייעני טרור.https://t.co/WMyPAoVQF0
— בצלאל סמוטריץ' (@bezalelsm) February 8, 2024
The minister took this step after Israel alleged that 12 of the organization’s staff members had been involved in the October 7 massacre, including kidnappings, and that 190 of his staff had ties to Hamas.
UNRWA enjoys several benefits due to its status as a UN agency. Among them, the organization receives exemption from customs and taxes on imported products for the agency's operation, complete exemption from VAT on product imports, and negligible purchase taxes on fuel purchases for organizational purposes, including exemption from blue tax.
The decision is expected to be finalized in the coming days.