Vehicle Taxation Incentive

Fuel Choices

On March 2016, the 3rd Green Taxation Inter-ministerial Committee released comprehensive policy recommendations to promote the use of oil substitutes through:

  • economic incentives
  • focus on the environmental benefit
  • emphasis on the country’s energy security

The recommendations include a differentiated taxation policy (“Green” Progressive Taxation) for the three fields related to energy for transportation:

  • infrastructure
  • fuel types
  • motor vehicles

As for June 2017 the recommendation should be approved in the finance committee in the Israeli parliament in order to become effective.

  • For the 3rd Green Taxation click here.
  • Governmental resolution no’ 1837 that summarize the report can be found here.
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