The cabinet on Sunday 18 Iyar 5773, approved the Car Imports Bill which Transportation Minister (Likud) Yisrael Katz announces will lower the price of a new, used, leased vehicles by about 20% in most cases. The bill will introduce competition into the marketplace, reduce import restrictions, and permit small businesses to import two vehicles annually, bypassing official importers. The bill will also reduce the cost of parts and therefore, servicing vehicles should be less expensive as well as insuring a vehicle.

The first of the new less expensive imports are expected as early as May 2013, with Ayalon Motors bringing in a line of Fords and Lincolns.

As Katz works to lower car costs Finance Minister Yair Lapid has a different vision, working to introduce additional taxes that would increase the cost of a smaller vehicle by 3,000 NIS and a family vehicle by 10,000 NIS. He also plans new taxes on employees who receive a vehicle from their employer, including a gas tax of 500 NIS monthly per vehicle.

(YWN – Israel Desk, Jerusalem)