Nearly 300,000 new cars will hit Israel's roads this year and traffic jams continue making life hard with no immediate solution in sight - but the Ministry of Transport considers this to be an encouraging figure. At the Car Summit convention, Minister of Transport Yisrael Katz commented on the number of cars on the road in Israel, "The car market is growing and does not face a crisis, and I see no problem with this. The average of cars per capita in Israel is a third of the US average and a half of the average in Europe."
On the topic of Israel's car taxation, the minister said, "Car taxation constitutes about a half of the growth of the state of Israel. I wish taxes would drop and everyone will be able to buy a car, but I am not responsible for this. Car imports will not decrease in the next few years."
This year, Israel's revenues from car taxes are expected to total a record sum of almost NIS 40 billion, which comprises purchase tax, fuel tax, annual licensing fees and more.
Katz said that the growing number of cars is not related to use of public transport, "There are places in the world with a much higher number of cars while use of public transport is much greater."
The minister talked about the future of the car industry, with the introduction of autonomous cars and said, "All drivers, not only taxi drivers, must understand that in five years no one here will drive a car. You in the car sector and us regulators must prepare together for something looming in the not so distant future. Many adjustments will be required, from regulations to taxes. International giants and large car manufacturers have been investing in this field and have set 2021 as a target. We will have to see what to do with all the employees whose professions will become irrelevant following the changes."
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2016
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