Electric-car buyers to get thousands of shekels in tax benefits from Israeli government
-Motorists who buy electric-powered cars and some hybrid cars are to get additional tax benefits in a bid to encourage more Israelis to purchase these greener models, Finance Minister Yuval Steinitz announced on Sunday.
-The new incentive involves lowering the purchase tax on certain vehicles that pollute less than standard internal-combustion vehicles, resulting in a saving of NIS 6,000 to NIS 10,000 for car buyers.
-Under the new policy the tax on electric cars is being cut from 10 percent to 8 percent this year and next. When it comes to hybrid cars, which run on a combination of electricity and gasoline, purchase tax will remain at 30 percent, but it was slated to go up to 45 percent. Cars that run on a combination of gasoline and rechargeable batteries, which are called "plug-in" vehicles, will be subject to a lower, 20 percent purchase tax this year and next - a rate that will then gradually increase.
-Finance Ministry officials say the benefits for Israeli car buyers who take advantage of the incentives are collectively worth NIS 130 million over the next several years.