Israel Halts Updates to Vehicle Safety System Tax Incentives

Israel's Ministry of Transport has decided not to update the scoring system for vehicle safety features, meaning the tax incentives for importing safer cars will remain unchanged in 2027. This marks the first time since the system's inception in 2013 that no adjustments will be made.

The current system uses tax breaks to encourage car importers to equip vehicles with advanced safety technologies. Buyers receive tax credits based on the safety features installed, with each point translating to hundreds of shekels and a maximum benefit of approximately 2,500 shekels for a score of 10.5 points.

While the system has historically adapted to new technologies, with older features like ABS no longer receiving points as they are now standard, the 2027 update will freeze the scoring. This means that even as safety systems become more sophisticated, the tax incentives will not reflect this progress. For example, systems that only alert drivers to potential dangers will continue to receive the same points as more advanced systems that actively intervene, such as steering correction or automatic emergency braking.

Features like blind-spot detection, driver distraction warnings, rear cross-traffic alert, and adaptive headlights will retain their current point values. This decision comes despite the ongoing development of safety technologies, potentially disincentivizing the import of the most cutting-edge safety features that are not yet mandated by law.