Is the 'Green Tax' nearing its end? The Treasury is considering replacing the reduced-pollution incentive mechanism
The Israeli Ministry of Finance is considering canceling the 'Green Tax' benefit and replacing it with a different environmental taxation mechanism, arguing that it has exhausted its purpose and its cost is high. The cost of the benefit in 2025 stood at 1.1 billion shekels. Meanwhile, Mercedes launched the electric C-Class in Israel, and Israeli car importers are expanding operations in Europe with Chinese brands.
The Israeli Ministry of Finance is considering canceling the 'Green Tax' benefit and replacing it with a different environmental taxation mechanism. The Treasury argues that the mechanism, launched in 2009, has exhausted its purpose of encouraging a shift to low-emission vehicles, and its cost to the state is no longer justified. The cost of the benefit in 2025, excluding electric vehicles, amounted to 1.1 billion shekels. The tax benefit for plug-in vehicles alone cost 373 million shekels. In contrast, the 'Green Penalty' on polluting vehicles brought in 308 million shekels. The article also covers the launch of the renewed Mercedes C-Class in Israel, for the first time in a fully electric version, and the expansion of Israeli car importers' activities in Europe through Chinese brands.