Minister of Finance Moshe Kahlon has signed an order reducing the tax rate on motorcycles with engines up to 125cc and power up to 11 kilowatts from 40% to 25%. The administrative order is valid until June 30, 2017.
Kahlon said, "This decision is another measure in our struggle against the cost of living in Israel. It will put more money in the motorcyclists' pockets, ease road congestion, and reduce air pollution."
The purpose of the measure is to encourage purchases of small motorcycles used mainly on urban streets, thereby reducing air pollution, road congestion, and economic damage caused by drivers wasting many hours in traffic jams. The cost of the measure in lost state revenue is NIS 10 million in annual terms.
At the end of the administrative order period, the results of the lower purchase tax rate will be evaluated, and the tax method in the category will be decided. Among other things, the possibility of adjusting the taxation methods according to air pollution and safety, as is done for cars, will be considered.
Published by Globes [online], Israel business news - www.globes-online.com - on July 19, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016