Tax breaks for modern, fuel-efficient and low-pollution cars are set to expire soon, and as a result, prices on some of the most popular models in Israel will rise between NIS 1,250 and 5,000. The tax breaks have been in place since 2009. The tax change is due to the toughening of standards for the tax breaks, with many of the current models on the market not qualifying because they release too much pollution into the atmosphere.

In the near future, the Tax Authority intends to implement another tax break – with cars that have increased safety mechanisms and systems receiving a tax break, No date has been set for the implementation of that break, however.