Green Car Incentives For Israel Car Buyers

The eagerness to reward green car buyers for their purchases now looks likely to extend to Israel, where the finance ministry is planning new regulations on car purchasing according to Reuters.

The changes planned are meant to alleviate increasing air pollution as well as save energy costs. It is expected that the cars with the highest fuel consumption levels, such as SUVs, will face increased taxes and duties. Meanwhile, there will be discounts for people who buy hybrid cars and a scrappage scheme style payment for those that get rid of older cars.

Currently, purchase tax on many car models is 77 per cent of the car’s imported value - this percentage is expected to rise to 92 per cent. Fuel taxes have also been increased in recent weeks with further rises expected.

It’s a difficult time for car buyers in Israel, but with taxes on hybrids to be cut by 30 per cent, there is at least some light at the end of the tunnel. The Government hopes that people will be induced into buying environmentally friendly cars due to special tax reductions and to junk old cars that are more than 20 years old thanks to special rebates of 3,000 Shekels for getting rid of the older vehicles.

However, the concept has been criticised in some circles with critics pointing out that the reason so many owners do not buy newer cars is because of the high import duties and purchase taxes. There is also no mention of electric cars despite the fact that charge stations are being built in association with Better Place.