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Israel’s Finance Ministry Plans to Cut Green Tax Benefits, Raising Plug-In Vehicle Prices from 2027

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דווח לראשונה בGlobes · Jul 20, 2026

מה קרה

Israel’s Finance Ministry plans to revise the pollution formula for green tax benefits starting in 2027, reducing subsidies for plug-in hybrid vehicles. This change responds to rising costs from increased sales of affordable Chinese plug-in hybrids, which currently receive large tax breaks. The new formula will include secondary pollution factors, likely raising prices for these vehicles and saving the state hundreds of millions of shekels annually.

01Israel’s Finance Ministry will reduce green tax benefits for plug-in hybrids starting in 2027.
02The change targets the pollution formula to include secondary pollution like tire and brake wear.
03Plug-in hybrids have surged due to affordable Chinese models, increasing state subsidy costs.
04Current tax benefits are based on a formula that underestimates real emissions from plug-in hybrids.
05Price increases for affected vehicles could exceed 10,000 shekels due to reduced tax breaks.
06The reform aims to better reflect environmental impact and reduce government spending on subsidies.

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Dubi Ben Gdalyahu