Israel Proposes New Fee System for Taba Border Crossing

Israel's Ministry of Transport is proposing a change to the fee collection system at the Menachem Begin (Taba) border crossing with Egypt. Under the proposed regulations, all travelers will initially be charged a 120 shekel fee, including those traveling only to the Taba area. This fee will be refunded upon return to Israel if travelers can prove they did not venture beyond the Taba region into other parts of Egypt. This change aims to address difficulties in verifying eligibility for fee exemptions, as reported by the economic publication "Calcalist" on Sunday, September 27.

Currently, travelers heading solely to Taba are exempt from the fee under specific conditions, while others pay 120 shekels. The Israel Airports Authority noted that some passengers claim to be visiting only Taba but then travel further into the Sinai Peninsula. Hotel booking confirmations are not a reliable verification method as they can be canceled. The authority estimates this situation leads to lost revenue.

The fee collection method has already been the subject of legal challenges. In July 2023, a class-action lawsuit was filed against the Airports Authority, arguing that charging exempt passengers and then refunding them violates regulations. The district court allowed the case to proceed as a class action in July 2024, and the Supreme Court rejected the Airports Authority's appeal in June 2025. The Supreme Court ruled that current rules mandate granting exemptions at the point of departure, not through a refund process, though it acknowledged the practical difficulties this creates.

The Ministry's new proposal seeks to legally codify the initial collection of the fee with subsequent refunds for eligible individuals, thereby addressing the court's ruling while mitigating operational challenges. The Menachem Begin border terminal, located south of Eilat, handles approximately one million passengers and 70,000 vehicles annually. The terminal operates 24/7, except for Yom Kippur and Eid al-Adha, with a daily vehicle quota of 70.