Israel has the dubious honor of being ranked sixth in fuel taxation among OECD member states, reports the OECD 2015 taxation review published today.
The percentage of taxes for a liter of gasoline, including VAT and excise, is 65.4% of the overall price. The only countries with higher fuel taxes are the UK, Holland, Finland, Germany and Italy. As for diesel, Israel reaches the top five taxers, with taxes comprising 62.7% of the overall price.
On December 1, the government controlled maximum gasoline price will go down by a few agorot, but even after this decline in prices, the percentage of tax will still be around 65%; the tax rate does not take into account the significant drop in oil prices in the past two years.
According to the OECD's review, Israel is also ranked high on maximum car purchase taxes, with a maximum tax of 82% (not including luxury cars); Israel is still ranked high even after weighing the green tax benefit, which lowers the average purchase tax.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
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