Knesset ignores Airbnb tax evasion loophole

During discussions on Israel’s 2025 state budget, which was approved by the Knesset this week, the Finance Committee raised a proposed law which would have required online platforms like Airbnb and Booking.com, used for short-term rental deals, to report all transactions. The aim of such a law, proposed by the Israel Tax Authority and the Ministry of Finance, was to provide the authorities with tools to cope with the trend of unpaid taxes on unreported short-term rentals.

But discussions on the bill were one of the shortest ever held by the Finance Committee. The bill was opposed by every MK present at the meeting, led by Orit Farkash Hacohen (National Unity Party) who charged that the Ministry of Finance was trying to make the digital platforms into “informers.” Within just 15 minutes MK Yinon Azoulay (Shas) closed the debate by throwing the proposal out of the budget bill.

This effectively buried the bill, as pushing it through “regular” legislative procedures…