According to the story published in the Financial Times, Israel is planning to tax Google at rate of 7 percent on search engine ad revenues to subsidize local content publishers.
New bill to Israel’s parliament (the Knesset) is not specific to Google only however the bill has been unofficially nicknamed as the “Google Law.” Israeli Prime Minister Benjamin Netanyahu made statements. According to the FT, Netanyahu said he wanted the country “to ensure a favorable – and not hostile – business climate for these [tech and internet] companies.” It’s still not clear how much support the bill currently has.
“Israeli content makers, large and small, are generating quite a bit of traffic relative to the size of the population. They are suffocating; they can’t make a living,” said Erel Margalit, member of the left-wing Labor Party who is sponsoring the bill.
Generally Google is regarded by legislators as a deep pocket and potential source of revenue. It is often considered as unjustly diverting revenue from third-party publishers while benefitting from their content. So far Google and other search engines have never been subjected to such levies.