Finance Minister Roni Bar-On submitted last week the Green Taxation Committee's final recommendations to the cabinet. The proposals focus on ways to cut vehicle pollution in Israel and the use of polluting fuels.
The Green Tax committee has proposed that the Israel Tax Authority set a "Green Index," for the purpose of calculating levels of vehicle pollution, and the setting of purchase tax for cars on a sliding scale according to the level of pollution they emit. Cars with heavy emissions will be more heavily taxed, and relatively environmentally friendly cars will entitle their owners to tax breaks. The Green Tax committee, which is chaired by Ministry of Finance - Israel Tax Authority senior deputy director of finance and development Boaz Sofer, comprises representative from the Ministries of Finance, National Infrastructures, Transport and Environment.
According to the recommendations, cars will be ranked by emissions. New vehicles sold in Israel will be divided into 15 categories. Low-polluters (groups 1 to 7) will enjoy purchase tax benefits of NIS 1,000 to 6,000, and groups 9 to 15, the "dirty" cars, will carry a purchase tax penalty of NIS 1,500 to 15,000. Purchase tax on cars is presently 79%.
