Israel to Cut Taxes on Scooters

July 20, 2016 Taxation in Israel

Jerusalem propertyTEL AVIV – Scooters and motorbikes in Israel will slash taxes on scooters from 40 percent to 25 percent in an effort to reduce traffic jams.

The Finance Minister of Israel Moshe Kahlon announced that the taxes on small motorbikes would be decreased, in an effort to cut congestion and emissions.

Until June 30th 2017 the tax on the sale of small motorbikes will be reduced from 40 percent to 25 percent.

In order to fall within the scope of the tax cut, the motorbike must be less than 125cc and be rated at less than 11 kilowatts.

It is believed that the reduction in the price of small motorbikes will lead to a greater uptake by people, ultimately leading to reduced emissions levels and reduced congestion in urban areas.

It is believed that congestion in Israel causes enough economic damage to result in a much as ILS 10 million being lost in tax revenues each year.

In 2017, when the tax cut is set to expire, the government intends to evaluate the results, and potentially implement further changes to the tax to better align it with the government’s goals.
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