Will They Get More Expensive or Not? The Finance Ministry Distributed the New Pollution Formula for Vehicles
The Ministry of Transportation today distributed a new formula for calculating pollutants for new vehicles, which tightens the parameters for carbon dioxide emissions and respirable particles. The formula does not take into account the new European measurement method or parameters such as pollution from tires and brakes. According to estimates, hybrid and plug-in hybrid models will jump by two to five pollution groups, and their tax benefit will decrease by two thousand to seven thousand shekels. However, the auto industry estimates that most models will not become significantly more expensive due to market conditions.
The Ministry of Transportation today (Monday) distributed among car importers a new formula for calculating pollutants for new vehicles, which tightens the parameters for carbon dioxide emissions and respirable particles. The formula, based on five pollutants, sets deductions from the purchase tax (83%) up to about 17,000 shekels. The new formula does not take into account the new European measurement method that takes effect this year, and does not include parameters such as pollution from tires, brakes, and fuel vapors, which were considered but not included due to lack of time. According to preliminary estimates, hybrid and plug-in hybrid models will jump by two to five pollution groups, and their tax benefit will decrease by between two thousand and six thousand to seven thousand shekels. However, the auto industry estimates that most models will not become significantly more expensive due to the Israeli market situation, where sales are low and the shekel is strong against the dollar.