New formula for calculating pollution categories published: “hybrid” cars will become more expensive

The Ministry of Transport has published an adjusted formula for calculating the pollution category for motor vehicles, according to which cars are granted tax deductions.

The formula is adjusted every two years in line with the pace of advances in green technologies and is designed to encourage the import of less polluting vehicles.

There are a total of 15 categories. Cars that are in category 15 do not receive a tax deduction, cars that are in category 1 receive a tax deduction of 17 thousand shekels.

The classification of cars into categories is based on a complex mathematical formula that takes into account five types of pollutants emitted by a car – CO2 (carbon dioxide), HC (hydrocarbons), PM (particulate matter), NOX (nitrogen oxides) and CO (carbon monoxide).

The updated formula will result in many models being moved up 2-4 positions from January 1, 2025, and, accordingly, in a reduction in the tax benefit. Small cars and cars with hybrid engines will become more expensive than others due to the changes in the formula.