New Fine Reduction Bill Set to Ease Burden on Israeli Citizens and Businesses

The Knesset cuts penalties for late fine payments

A bill that will reduce the penalties imposed on administrative and criminal fines in cases of delayed payment has been passed by members of the Knesset. The new law, which was approved in both the second and third readings, sets the fine at 30% of the original amount, down from the previous 50%. Additionally, penalty interest will be applied to the debt every three months under the Penalty and Indexation Law without any calculation of compound interest.

Under this new regulation, a fine of 1,000 shekels that is not paid on time will increase to 1,420 shekels within a year, as opposed to the previous 1,600 shekels. It is important to note that these new regulations will only come into effect starting on January 1, 2025. This means that individuals and businesses who owe fines will have more time to pay them off without facing as severe penalties.

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