Daily Israel Report

Employment Up, Car Taxes Down

Increasingly-employed Israelis will now be able to take advantage of their income by purchasing less-taxed cars.
By Malkah Fleisher
First Publish: 11/25/2009, 10:44 PM / Last Update: 11/26/2009, 8:41 AM

Israel's unemployment rate dropped below 8% in the second quarter, according to a Wednesday report by the Central Bureau of Statistics (CBS).

Rising from 2.76 million employed Israelis in the second quarter, 2.78 million Israelis are employed in the third quarter. 

The CBS recently reported that the Gross Domestic Product (GDP) grew by an APR of 2.2% in the third quarter, up from a 1% increase in the second quarter.

Israelis will now be able to take advantage of their amplified income by purchasing cars for a reduced price, thanks to a tax reform on vehicles passed by the Knesset Finance Committee, also on Wednesday.

As part of the modification, the purchase tax on new vehicles will drop from 90% to 83% of the list price.

The reform also included green taxation benefits up to NIS 15,000 for car models with particularly low emissions.