The Knesset Economy Committee approved, on Tuesday, a second-and-third-reading version of the Metropolitan Authorities Bill that includes a last-minute clause repealing the so-called “parking lots law.” The clause, added by MK Naama Lazimi and committee chair David Bitan, would cancel the requirement that parking operators charge by the minute, but it does not impose any alternative pricing formula.
The original reform was meant to help drivers pay only for the time they actually parked. Instead, once it took effect in December, many parking operators raised prices sharply to offset lost revenue. A Knesset Research and Information Center report found that most parking lots became about 30% more expensive, and lawmakers concluded the reform had failed.
The law was originally backed by MKs from both the coalition and the opposition and passed with government support about a year and a half ago. After the damage became clear, former supporters distanced themselves from it. Finance Minister Bezalel Smotrich repeatedly blamed Lazimi for the price increases, even though the bill began with coalition MK Avraham Betsalel, who has since left the Knesset. Smotrich also met with major parking operators and later announced he would cancel the law, saying their pledge to drop prices would follow.
But months passed and the finance minister stopped acting. Lazimi and Bitan then moved to fix what they described as their own mistake, saying there was not enough time left in the current Knesset term to pass a new standalone bill. With legal advice from the committee, they inserted the repeal into the broader metropolitan bill, which still needs final plenary approval. Even if it passes, prices are not legally required to return to previous levels, despite earlier promises from the industry. Smotrich celebrated on X, writing, “I promised to cancel Naama Lazimi’s insane parking law, which caused a huge rise in parking prices. I promised and delivered.” Lazimi fired back that Smotrich “dragged his feet,” refused to use his authority, and “abandoned the public,” adding that the government had a year to prepare and ample powers to prevent the hikes.
