The draft Arrangements Law that was leaked reveals that it is proposed to establish a committee that will examine a mechanism in which the travel tax (by kilometer) will be levied, which is expected to replace the tax on fuel (excise tax) and thus lower fuel prices on the one hand and electric vehicle owners | This tax is expected to be similar to the mechanism of congestion charges
The draft arrangement law that will soon be submitted to the government has been leaked, resulting in a number of reforms planned by Finance Minister Avigdor Lieberman. In addition to the decrees on the planned ultra-Orthodox public, a number of other reforms are being proposed. After much criticism of the excise tax that micromanages the price of fuel, the Treasury wants to embark on a move that will remove the tax from the price of fuel and impose a tax on travel and thus also charge the owners of electric vehicles a tax.
According to the proposal, a new tax that will replace the excise tax and be adjusted for the transition to an electric vehicle, and will be paid according to the number of kilometers the vehicle travels (traveled). The tax should be equivalent to the excise tax Due to pollution and noise, a special committee is to examine the collection of this tax, as well as other aspects related to the transition to an electric vehicle, such as the effect on the demand for electricity, charging stations, the layout of the electricity network and more.
The tax, basically, is designed to produce traffic jams and encourage public transportation. However, it seems that despite the minor investment in the development and expansion of roads, a travel tax exists in several countries around the world, and in Australia one of the countries applied it to electric vehicles in such a way that according to a calculation by Calcalist.
Meanwhile, the 2025 increase in the purchase tax on electric cars has been postponed, and while the Treasury in response to Calcalist’s request to the tax authority that there are discussions about the travel tax for electric vehicles (and plug-ins), it is not yet clear how many cents will be charged for each kilometer traveled in the future. .