Israel Approves Fuel Tax Cut Amid Economic Concerns
Translated & summarized from Kikar HaShabbat by baba
Israel's Attorney General approved a plan to cut fuel excise tax by about half a shekel per liter, lowering the price despite professional opposition within the Finance Ministry. The measure, costing the state 300 million shekels monthly, aims to ease the cost of living and is expected to take effect by the end of the week.
The story in 5 lines · by baba
- Attorney General approved a fuel tax cut of 0.5 shekels per liter.
- The reduction aims to lower gasoline prices and ease cost of living.
- The move faces opposition from Finance Ministry professionals.
- The tax cut is expected to cost the state 300 million shekels monthly.
- The price reduction is slated to take effect by the end of the week.
Israel's Attorney General Gali Baharav-Miara has approved a plan by Finance Minister Bezalel Smotrich to reduce the excise tax on fuel, effectively lowering the price of gasoline by approximately half a shekel per liter. The decision comes despite strong opposition from professional staff within the Finance Ministry, who expressed concerns that the move might be politically motivated ahead of elections.
Earlier, the legal advisor to the Finance Ministry, Dudi Koppel, submitted an opinion to the Attorney General. While acknowledging that the proposed reduction in the fuel excise tax contradicts the professional echelon's stance, Koppel noted that similar measures were implemented in Israel and other countries in 2022. He concluded that, considering the need to alleviate the cost of living, there was no legal impediment to approving the plan.
Smotrich stated that the measure aims to soften the anticipated increase in gasoline prices for consumers. The reduction is estimated to cost the state budget around 300 million shekels per month. Currently, a liter of 95-octane gasoline costs 8.25 shekels, and the price is expected to drop to 7.75 shekels following the tax cut.
The Finance Minister intends to sign the order promptly, aiming for the price reduction to take effect by the end of the week. This move is expected to provide relief to many drivers facing rising fuel costs in recent months.
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