Israeli Finance Minister Uses Legal Loophole to Cut Fuel Prices Before Election
Translated & summarized from Cursorinfo by baba
Israeli Finance Minister Bezalel Smotrich has obtained legal approval to reduce gasoline excise taxes by 50 agorot per liter, a move intended to lower fuel prices before upcoming elections. The reduction is expected to cost the state budget significantly.
The story in 5 lines · by baba
- Finance Minister Smotrich approved a 50 agorot cut in gasoline excise tax.
- The price reduction aims to lower fuel costs for consumers before elections.
- The move was approved using a legal loophole, citing past precedents.
- The tax cut is expected to cost the state budget 2.2 billion shekels annually.
- Fuel prices will decrease by approximately 59 agorot per liter after VAT.
Israeli Finance Minister Bezalel Smotrich has secured legal approval to reduce gasoline excise taxes by 50 agorot per liter, lowering the rate from 3.66 shekels to 3.16 shekels. This move, reported by TheMarker, is set to take effect at midnight, with the final price reduction for consumers expected to be around 59 agorot per liter after value-added tax is applied. The decision follows Smotrich's invocation of a legal "loophole" and references past actions by former Finance Minister Avigdor Lieberman, who also reduced fuel taxes twice, including once shortly before elections. The Finance Ministry's legal department reportedly approved the temporary measure to avoid accusations of double standards, despite differences in the timing compared to Lieberman's actions. The tax cut is projected to cost the state budget approximately 2.2 billion shekels annually, with an estimated loss of 350 million shekels during the two-month election and coalition negotiation period. Previously, it was reported that fuel prices would decrease by 50 agorot per liter, bringing the price of 95-octane gasoline to 7.75 shekels from a high of 8.25 shekels.
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