Electric cars and cars with internal combustion engines will become more expensive in Israel from January 1 due to a change in the purchase tax.
The change in the formula by which this tax is calculated depends on the “pollution level” of the car: the cleanest (electric cars) are entitled to a full deduction of NIS 16,000, while vehicles that are considered very polluting do not receive a deduction at all. There are 15 pollution levels; the amount deducted from the purchase tax is determined by a complex formula that takes into account five different types of pollutants.
It should be noted that the calculation formula may change every two years.
As “Calcalist” specifies, a new calculation formula, stricter than the current one, will be published next week and will come into force on January 1. It is expected that this will lead to many car models, in particular small cars and hybrids, rising by at least two pollution levels.