In the past two years, new and popular electric vehicle brands such as Geely and BYD have entered Israel, offering family cars with a significant driving range of 300-500 km and prices of NIS 140,160-10,000. The public has shown great interest in better, quieter vehicles, which produce significant fuel savings that reach as much as NIS <>,<> a year.
Titi Ainaw at the launch of an electric vehicle // Photo: Moshe Ben-Simhon
However, starting January 1, the Ministry of Finance intends to raise the purchase tax on electric vehicles from 20% to 35%, raising them by up to NIS 10,000.
"The outline will distance electric vehicles from many populations," Eitan Parnas, CEO of the Association of Green Energy Companies, told Israel Hayom. "According to data from the Ministry of Transport, most of the electric vehicles are mainly in the Tel Aviv district and in the center. If the tax increases, an injustice will be done to entire populations that will not be able to purchase an electric vehicle, and they will be excluded from progress."
New vehicles. Dear ones, photo: none
"In Israel, everything is the opposite – the excise tax on gasoline has been subsidized for more than a year, which has already cost the state coffers NIS 2 billion, and now the tax on vehicles will jump and the electric vehicle will eventually be for the rich only."
According to Parnas, car importers were aware of the planned tax increase and ordered thousands of vehicles, which are currently on ships en route from Asia. But the sea transport route has been disrupted by Houthi attacks, so vehicles arriving in the country after January 1 will be more expensive in advance.
"The expectation was that the Tax Authority would treat these vehicles as already in Israeli territory, and allow them to benefit from the 2023 tax bracket," he explains. "But bizarrely, and instead of helping importers and consumers in the weaker strata, the country is enjoying the fruits of Houthi shame."
The Tax Authority said the matter was under investigation.
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