The outline that will now make the streetcars more expensive was approved by the finance committee headed by Gafni three years ago (photo: manufacturer's website)
MK Moshe Gafni (Photo: Reuven Castro)
Minister Miri Regev (Photo: Courtesy of Kaan 11)
The Chairman of the Finance Committee Moshe Gafni (Torah Judaism) demands that
the Tax Authority delay for a year the increase in the tax on electric vehicles, which has increased the prices by 5-10 percent.
.
The increase in price is something that should be postponed today, and a period of time until the government studies this issue, whether it is possible to continue the benefit or do it in another way, but for a year that the benefit will be maintained.
We have not yet reached the penetration percentages of trams as in other countries.
Members of the Knesset from all parties turn to you and ask to postpone the tax increase for the year.
Examine the process, and do not come on the eve of the inauguration of a new government, raise taxes, harm the health of all of us.
This is a wrong decision, which needs to be corrected, does not mean cancel, but postpone for a year and consider.
This is the Finance Committee's demand from you, I ask that you get back to me with an answer within 3 days."
The new Minister of Transportation, Shanna Miri Regev, also said today that "I will oppose the increase in the tax on electric vehicles and the introduction of a passenger tax on trams. You cannot say that you encourage a green vehicle and then impose a tax on it. The decision should be logical and understandable."
Gafni did express opposition to the move last week, after canceling a discussion on the issue for the purpose of urgent money transfers.
But the green tax outline, which already stated three years ago that the purchase tax on an electric vehicle will be doubled on January 1, 2023 from 10 to 20 percent and at the same time the maximum discount will be cut from 75 to 60 thousand shekels, was approved by the finance committee back in 2019, When Gafni was the chairman of the committee.
In the last year, when the date of the update approached, and it was clear that contrary to the assumptions made when the outline was approved, that the prices of the streetcars would decrease thanks to the reduction of the batteries, in practice the opposite process took place, Gafni refrained from convening the committee to discuss the issue until the last week of the year.
Even today, the Chairman of the Finance Committee refrained from initiating a proposed resolution of the committee on the issue, and asked the Tax Authority to bring one to a vote.
Regev, who had already served as Minister of Transportation for a year between 2020 and 2021, did not then initiate a move to change the outline.
In today's discussion, the Director General of the Defense Ministry said Environment, Galit Cohen, that "the entry of electric vehicles into Israel is critical from an environmental point of view, the reduction will harm Israel's ability to meet the climate goals, we committed to 95 percent electric vehicles by 2035, we are currently at 1.1 percent. Environmental pollution from transportation is the largest in the country Israel, they are the biggest cause of death."
Cohen added that in the last two years, the economic viability of purchasing an electric vehicle has been damaged as a result of an increase in the purchase price and the electricity tariff, and that in order to meet the national goals and avoid harming the transition of the market to electric transportation, the outline of the tax increase on electric vehicles must be postponed for at least two years.
"1.1% electric cars of the total number of cars in Israel is a failure, not a success"
Eitan Farnes, CEO of the Association of Green Energy Companies for Israel, explained in the discussion that "we are not Norway with 86% electric vehicle sales.
In Israel, only a percentage of the vehicles on the road are electric, this is a failure, not a success.
The tax increase excludes entire communities from the transition to electric transportation and sends them to the gasoline and the excise tax.
And precisely those for whom the price increase of several thousand shekels decides the decision.
We are here in the fight for the right to green energy and call on the committee to promote a private bill that will freeze the tax increase.
Also, we are asking the tax authority to cancel the purchase tax on the charging stations, which we were promised a year ago that would happen."
Either way, the Tax Authority is not impressed by the demand, which costs the state budget about NIS 700 million.
Miri Savion, Deputy Director of the Tax Authority, said in the discussion that "the government continues to encourage the entry of electric vehicles, there is no doubt that an electric vehicle has advantages over a gasoline vehicle, it is less polluting, an electric vehicle receives a benefit on taxation and the total tax benefit for an electric vehicle can reach 77 One thousand shekels per vehicle in 2023, this is a very significant incentive. An electric vehicle does not pay an excise tax on fuel, which is a tax on travel. When the employer credits the value of use to an employee who receives an attached vehicle, the electric vehicle receives a reduction of 1,200 shekels per month. We are seeing an increase in the penetration of vehicles Such vehicles, we reached more than 42,000 electric and plug-in vehicles this year, close to 20% of the total number of vehicles imported to Israel this year."
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