Israel Approves Fuel Tax Cut Amid Election Proximity
The Israeli government's legal advisor, Gali Baharav-Miara, approved on Wednesday evening a request from Finance Minister Bezalel Smotrich to temporarily reduce the "blue" tax on fuel, which will lower the price of gasoline by 50 agorot per liter. The decision is expected to take effect immediately upon Smotrich's signature, bringing the price down from 8.25 shekels to 7.75 shekels per liter.
The Ministry of Finance's legal department determined that the tax reduction is permissible despite the upcoming elections, citing a precedent set by former Finance Minister Avigdor Lieberman. The measure is slated to remain in effect until October 31, 2026.
Smotrich's decision follows a sharp increase in gasoline prices on September 1st, when the price for self-service "octane" gasoline reached 8.25 shekels per liter, a level not seen since September 2012.
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