News Brief

(IsraelNN.com) Minister of Finance Ronnie Bar-On and member of the Committee on Green Taxation has presented a proposal to the government which would tax cars based on their level of pollution.  A 'Green Index' would calculate the levels of vehicle pollution, and set the amount of purchase tax on new cars on a sliding scale according to the amount of pollutants they emit.

The proposal also recommends that the Tax Authority offer tax breaks on vehicles with alternative power sources, and promote the use of green fuels.  A proposal not previously disclosed would make tax rates on fuel-powered vehicles 60 percent, down from 74 percent, with emission free vehicles being taxed at not more than 10 percent.

The Green Tax committee, which is chaired by Ministry of Finance - Israel Tax Authority senior deputy director of finance and development Boaz Sofer, comprises representatives from the Ministries of Finance, National Infrastructures, Transport and Environment.