The autonomous car is already here, so why are you banned from using it in Israel?

Israel lags behind Europe and North America in the field of autonomous vehicles due to regulatory barriers and taxation of driving software. According to the article, a change in tax policy could cost the state treasury approximately 600 million shekels.

Israel lags behind Europe and North America in the field of autonomous vehicles due to two main barriers: traffic regulations requiring both hands on the steering wheel, and the classification of autonomous driving software by the Tax Authority as an integral part of the vehicle. This means a price increase of about 50 to 60 thousand shekels per vehicle, roughly half of which goes to the state treasury through purchase tax. Revenue from taxing the software is estimated at about 600 million shekels. Talks between Tesla and the Tax Authority to change the classification have not yet matured. The Ministry of Transport stated that Israel is prepared to allow the operation of autonomous vehicles subject to approvals, and that the challenges relate to the companies' initiative.