Knesset members approved in the second and third readings a bill that reduces the amount of penalties assessed on administrative and criminal fines in case of delay in their payment.
According to the new law, the fine will be 30% of the main amount of the fine, and not 50%. After that, every three months, penalty interest will be added to the debt under the Penalty and Indexation Law without calculating compound interest (that is, the penalty will be charged only on the original debt, and not on the unpaid penalty).
Thus, a fine of 1,000 shekels not paid on time will turn into 1,420 shekels in a year, and not 1,600 shekels.
It should be emphasized that the new rules will come into force only on January 1, 2025.