For N. Americans and others the figure is somewhat staggering, but for Israelis’ a sigh of relief, as the sales tax on news vehicles was to have been set at 90% but the Knesset Finance Committee is willing to accept a milder 83%.

The sales tax was 72% until 2008, and it was to gradually reach 90% by 2010, but the committee on Wednesday held it to 83%. Do not get too excited however, because on the other side, the treasury eliminated a reduction for certain vehicular safety features, so in essence, the price is not going to be lower as indicated on the surface by the 83% tax.

The committee also reduced the taxation rate for employees who receive a vehicle from work. Employees using a car valued up to NIS 130,000 will be taxed at 2.05% while those driving a more expensive car will pay 2.48% of the vehicle’s worth every month.

(Yechiel Spira – YWN Israel)

Comment *