The Ministry of Finance and the Ministry of Transport are planning to levy a congestion charge on drivers entering Tel Aviv, according to a tender published on the website of Ayalon Highways Ltd., which operates Road 20, the Ayalon Highway in Tel Aviv. The plan proposes a charge of between NIS 0.10 and NIS 1 per kilometer of travel inside the city, based on traffic congestion.
The ministries are planning a pilot program with 1,200 drivers and Ayalon Highways in a few months. The proposal is part of the government's plan to reform vehicle taxes to gradually reduce the purchase tax on new motor vehicles and raise use fees.
Under the congestion charge pilot, participating cars will have GPS transponders installed, which will measure several factors, such as travel time, location, and distance in order to determine the amount of the congestion charge.
A motor vehicle that does not travel during rush hour and whose congestion charge does not exceed NIS 100, will receive a NIS 250 credit. The owner of participating vehicles will receive NIS 500 for participating in the pilot. This fee will not be paid to a driver who disconnects the system. The deadline to participate in the pilot program is Tuesday, April 12.
Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2011
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