Israel to Cut Fuel Tax, Lowering Gas Prices by 50 Agorot
Translated & summarized from Cursorinfo by baba
The story in 5 lines · by baba
- Israel plans to reduce gasoline excise tax by 50 agorot per liter.
- Fuel prices are expected to drop from 8.27 to 7.77 shekels.
- The Ministry of Finance has initiated a public review of the tax reduction order.
- The tax cut is a response to a recent record-high fuel price increase.
- The measure will cost the state an estimated 500 million shekels in revenue.
The Israeli Ministry of Finance is preparing to reduce the excise tax on gasoline, a move expected to lower fuel prices by approximately 50 agorot per liter within days. The price is anticipated to drop from the current record high of 8.27 shekels to 7.77 shekels. The ministry has published a draft order for public review, which concludes on Sunday. Following the review, Minister of Finance Bezalel Smotrich is expected to sign the order, potentially implementing the new prices by midnight the following day.
The proposed reduction will lower the excise tax on a liter of gasoline to 2.73 shekels, directly contributing to the retail price decrease. This decision follows a significant 6.7% surge in fuel prices last week, which pushed the cost to a record 8.27 shekels per liter. This marks the second consecutive excise tax reduction by the Ministry of Finance; a previous cut was implemented in early September and is set to expire at the end of October.
The tax reduction will result in an estimated loss of 500 million shekels in state revenue. Despite the pre-election period, which typically restricts government actions, the government legal advisor has approved the procedure, allowing it to proceed. The Ministry of Finance's legal advisor had previously given the go-ahead.
Earlier reports indicated forecasts of a price surge for food products in Israel.
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