Israeli gov't revenues from cars, fuel soar

new cars
new cars

Overall revenues from fuel, cars and related taxes reached NIS 40 billion in 2016.

Initial Ministry of Finance figures show that state revenues from fuel, cars and related taxes reached NIS 40 billion in 2016. Purchase tax on imported vehicles soared almost 50% in 2016 in comparison with 2015, when the previous record was set. New car purchase tax revenues totaled NIS 12.33 billion, not including revenues from VAT on the tax.

The fuel tax cash register also rang loudly with an all-time record of NIS 17.679 billion in revenue, up 4.5%, compared with 2015. Fuel tax revenues soared by no less than 30% in December.

These figures include neither an estimated NIS 5-6 billion in state revenues from licensing fees nor the estimated NIS 5 billion in tax on the value of company cars included in income tax.

Tax revenues in Israel in excess of the original forecast totaled NIS 7.5 billion in 2016. The forecast was upwardly revised during the year, but actual tax collection still exceeded this mark by NIS 2.3 billion.

The Ministry of Finance stated, "NIS 1.8 billion of the surplus is attributable to car imports brought forward in December 2016, at the expense of imports in early 2017. 80,000 cars were imported in December, almost triple the monthly average, This was caused by the revised formula for environmental taxation raising the effective tax on some vehicle models,which took effect at the beginning of January."

A substantial downturn in state revenues from vehicle taxes in January-February is projected, but the clear trend in recent years is a consistently steep rise in state revenues from vehicle and fuel taxes.

Published by Globes [online], Israel Business News - www.globes-online.com - on January 11, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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