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      Archive: 6/15/2009
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        6/15/2009, Sivan 23, 5769

      Tax Breaks for Environmentally Friendly Cars


      A special tax-break discount incentive for buying a hybrid car is part of the Finance Ministry’s plans for environmentally conscious regulations on car purchases, according to Reuters. The new changes are aimed at helping to alleviate the increasing air pollution caused by cars and to save energy costs. The new regulations will also include a provision for increased taxes and duties on larger, gas guzzling cars, including SUV models.

      Purchase tax on many car models is 77 percent of the car’s imported value, which is expected to be raised to 92 percent. Fuel taxes have also been increased in recent weeks and further increases are expected. The taxes on hybrids, however, will be reduced to 30 percent. Israel’s Finance Minister Yuval said that the government hopes that people will be encouraged to purchase environmental friendly cars due to the special tax reductions; and to junk cars more than 20 years old by receiving special rebates of 3,000 Shekels (US$750).