New decree: Approval of electric car license fee in thousands of shekels

• Published date: 21 April 2024
• Author: UDI ETZION/WALLA!
• Publication title: Jerusalem Post, The: Web Edition Articles (Israel)

The regulations were approved after a stormy debate, following a proposal that had already been rejected once, and will result in an average increase of NIS 2,300 for the licensing fee per car, aiming to generate approximately NIS 230M for the state treasury annually. However, committee chairman Moshe Gafni (United Torah Judaism) agreed to ease the burden on drivers and stipulated that the change will only come into effect in January 2025 instead of next July

The implication: Any electric car driver who passed the test before December 31st can pay the current tariff of NIS 546. The rest will pay a fee like gasoline and diesel cars, based on the price group and age of the car, regardless of the propulsion type.

The Treasury, supported by Transportation Minister Miri Regev, stated in the explanation of the regulations that the impact of electric cars on infrastructure, road congestion, and maintenance costs in the licensing system is no different from non-electric cars. It was also noted that reducing air pollution is evident as they do not pay tax on fuel.

MK Yonatan Azoulay (Shas): "It cannot be that on one hand they tell us they encourage green, subsidize, tax, and on the other hand do the opposite. Do you want to introduce a fuel tax? When? And how does it align with environmental quality and health? Will it help with traffic jams? Will people drive less?"

MK Naor Shiri (Yesh Atid): "The state does not want to encourage electric cars, it costs money, it's revenue for it."

MK Imtan Hatib Yassin (Ra'am): "Electric cars are purchased today also by the middle class, by those who want to save on fuel."

Itai Rabed, CEO of Tesla Israel, said in the discussion that "Tesla, the most expensive in the world, is sold in Israel. In the world, it is sold for 40,000 euros, in Israel it starts at NIS 220,000. What the State of Israel is doing, through the purchase tax that jumped to 35%, the percentage...