Knesset Panel Approves Move to Repeal Parking Fee Law

The Knesset Economy Committee, chaired by MK David Bitan, approved for second and third readings a bill that would cancel Israel’s so-called “parking law.” If the amendment passes, parking lots will once again charge for a full first hour, then in 15-minute increments, instead of billing by the minute.

The repeal is part of broader legislation to establish metropolitan public transport authorities in Tel Aviv, Jerusalem, and Haifa, with a second stage later planned for Beersheba. Under that framework, public transport management would shift from the central government to a metropolitan council made up of local authority heads familiar with conditions on the ground. The parking repeal clause would take effect four months after publication in the official gazette, giving operators time to adjust.

The original law, which took effect seven months ago, was intended to help drivers who parked briefly and were still charged for a full hour. In practice, parking lot owners responded by pricing per minute to offset lost revenue, and drivers who stayed two hours or more often paid much more than before. That led to widespread public complaints about unreasonable charges.

The measure still needs final plenum approval, and sources say the political situation makes the timing unclear. Bitan has said he hopes the change will lower prices, but acknowledged that it is not guaranteed because parking operators are not required to cut rates. The law changes only the billing method and sets no maximum price, leaving consumers potentially exposed if operators keep prices high.