The driver: the milk tax violation and we have proof of that
Going to vote at the ballot box? Not Haram on the day off? Oh well, at least we will improve our future. Wait, not really ... The drivers only interest the parties when they can be milked. And you don't believe how much
It is important that the cow be calm before milking
Monster named car tax (Photo: PR, PR)
In recent days, the major parties have released their economic substrates, detailing a number of issues they intend to address, most notably lowering the cost of living. More on the topic: Reducing food prices, increasing the supply of land for housing, directing huge resources for peripheral development and the health system. Only one issue was not addressed: vehicle maintenance costs in Israel. Why was the second most important expense item in the family unit left out of their pages? The answers to this can be found on the dairy council's website. Yes, you read correctly.More in Walla! NEWS More in Walla! NEWS
The Wandering Ballot: The Party Transport QuestionnaireTo the full article
An article that appears there provides recommendations to rascals to build a successful milking interface, with many similarities to the state's conduct in maximizing vehicle tax revenue. His first chapter deals with the fact that cows must be calm before milking: "A calm cow does not release high-level adrenaline that can affect the release and lowering of milk." This is exactly what the state is doing - generating a semblance of comfort to us: While the tax on car purchases reaches a maximum rate of 83%, but in reality where the interest rate on the loan to purchase reaches 1%, despair becomes much more comfortable. Also, the leasing method that is accessible to expensive vehicles at tolerable monthly costs is also exhilarating.
Taxation is crazy, but the fear that it will cost more people to buy cars
Bonded vehicle in Eilat (Photo: Kobi Liani)
Another chapter of the article deals with "the pre-milking and preparation of the cow" phase. And what did the Tax Authority do in 2019? Has issued an advance notice of its intention to make two separate rounds of changes to green taxation. The result - zero protests over the tax hike and even a dramatic jump in the number of new vehicles sold. And yes, unlike cows forced to be in pain, we seem to have the right to choose, but everything is a point of observation: On the one hand, no one is forcing us to buy a new vehicle. But on the other hand, hoi, the sense of missing out on the opportunity to purchase it before the tax increases, creates an urge to avoid losers, which in turn is a powerful, almost uncontrollable motive.
The public's indifference to the issue of car taxes is playing well with politicians. And so, for example, in relation to the license fee. A recent comparative research report shows that the average price of a license fee in Israel stands at an average of NIS 1,000 for the first three price groups and is 310% higher than the global average. And what would happen if, for example, the fee were increased by NIS 300? The finance minister will demonstrate?
The low tax rate on electric cars is a bluff, not a "green vision"
Road test: MG ZS EV (Photo: Keenan Cohen, Keenan Cohen)
It's green only in dollars ...
One of the sophisticated tactics through which we have a sense of security is the dissemination of encouraging, green and sweeping messages. These come last year from the Ministry of the Environment, the Ministry of Transport and even from the Ministry of Petroleum's oil department. Countless press releases and reports of willingness to adopt electrical, green and collaborative solutions and of course on subsidized pro-electric projects. And what about the tax authority? It is also the reason why she lives in peace with a low tax rate that will jump to 35% in 2024. It is clear to her that even in four years, the demand for electric vehicles will be negligible, mainly because of their expensive price. In fact, it triples its profits: avoids confrontation with other government ministries, creates a misrepresentation of Flakes towards the citizens and justifies the taxation policy on the other vehicles.
Public transport terminal areas will be doubled ... by 2040
Shuttles to public transport at the Maariv junction in the light rail construction area, August 2016 (Photo: Reuven Castro)
And what about the declaration of the emergency plan for multiplying public transport areas? In an exciting press release, it says: "The transportation and finance ministries are planning to double the areas designated for transport terminals and bus parking in Gush Dan by 2040" From these terminals we can all travel to visit the grandchildren, great. Or in other words - "What do you do if the Egyptians approach? 40 years, remember."
But the big money is actually used in the car. Fuel taxation in 2019 totaled more than NIS 18 billion, accounting for 5.4% of total revenue. The excise tax rate is 65% and significantly higher than in many countries around the world. The thing is that even if a tax increase of 70% is decided here, the Azrieli node will not be blocked. The Finance Ministry knows that the sense of intoxication from the new vehicle will distract us. The Passon, which involves an observer from the high seat of the Jeep, also contradicts the feeling of deprivation, leaving most of us in homes.More in Walla! NEWS More in Walla! NEWS
A monster named Car TaxationTo the full article
And if the fuel surcharge goes up to 70%, will you leave the house? of course not
Citroen Cactus in Long-Term Test: Third Report (Photo: Keenan Cohen, Nir Ben Tovim)The most advanced is the most lucrative The most advanced is the most lucrative
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The big problem is that the tax authority is mainly interested in the state's revenue in the present, while the impact of reform in the public transport sector will only come to fruition in a few years. The annual damage due to congestion has been estimated at over NIS 35 billion a year, but this is a poor estimate and a figure that is difficult to estimate, while tax collection figures are inconclusive.
So what's the bottom line? No government has so far worked to reduce state revenue from car taxes and the prospect of it happening in the near future aims at zero. This? Is that the case and we have to accept it? No it's not. Because the point is that there are much more balanced and just collection solutions.
For that, in the next article.
The writer is an expert in transportation and a senior leasing consultant for "Effective Solutions"