News Brief

(IsraelNN.com) The government plans to begin setting purchase taxes for cars based on the amount of pollution they emit, based on the engine size — meaning that owners of luxury cars and large vehicles would be hardest hit. The change in the purchase tax level — currently a straight 79 percent for all vehicles — would see small cars that have good gas mileage taxed at a lower rate, while purchasers of “gas guzzlers” with bigger engines — such as minivans — would be required to pay far higher taxes than they are currently charged.

According to the recommendations of the Treasury’s “Green Taxation Committee,” cars will be ranked by emissions. New vehicles sold in Israel will be divided into 15 categories. Cars that emit low-pollution levels will carry a discount of up to NIS 6,000, while “dirty” cars will carry a NIS 1,500 to 15,000 increase, depending on their energy efficiency ranking. The structure of annual car licensing fees would also be adjusted, both for new and used cars — which will also affect automobiles already on the road, as owners of larger cars will pay more for their annual car registration.