Finance Minister Moshe Kahlon signed an order last Thursday for an additional two years to raise the purchase tax on luxury vehicles.
In 2013, the government's decision to impose an increased purchase tax on luxury vehicles began. The tax increase applies to vehicles whose list price exceeds NIS 300,000.
According to the order, if the price of a consumer vehicle exceeds NIS 300,000, the purchase tax rate will increase accordingly. This order also applies to hybrid and electric vehicles priced above NIS 300,000. The order takes effect today from the time it was published in the records, and will be brought for approval by the Knesset Finance Committee.