The Finance Ministry intends to rescind income tax breaks for foreign journalists stationed here, according to senior political figures who asked to remain anonymous.

The treasury has tried in the past to withdraw the special conditions for foreign athletes as well as for journalists, but in the Economic Arrangements bill accompanying the last state budget the Finance Ministry proposed canceling them only for the foreign journalists.

For their first three years in Israel, foreign journalists can claim the rent on their residence here, as well as expenses for meals and lodging, as tax deductions, and are charged a flat 25 percent tax on liable income.

According to both a study by the Knesset Research and Information Center and a position paper issued by the Foreign Press Association in Israel, the addition to state revenues from the proposed changes would be minimal.

The FPA argued that it could lead foreign news networks to reduce their footprints in Israel, which could means a loss of Israeli jobs and revenue from goods and services. It also warned that it could hurt Israel´s image abroad.

The sources judged the likelihood of the breaks being cancelled as high, in part due to the fact that the Government Press Office has been director-less since Oren Helman left the post for a position at the Israel Electric Corp. six months ago. In his stint at the GPO Helman fought, successfully according to some media industry figures, against the treasury proposals.

The Finance Ministry declined to comment. (© Copyright 2012 Ha´aretz 07/02/12)