New Israeli Law Reduces Fines for Delayed Payment: How it Works and What You Need to Know

The Knesset cuts penalties for late fine payments

The Israeli Parliament has passed a bill that will reduce the penalties for administrative and criminal fines in cases of delayed payment. Under the new law, the fine will be set at 30% of the original amount, down from the previous 50%. Additionally, penalty interest will be applied to the debt every three months without calculating compound interest.

This means that 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. However, it is important to note that these new regulations will only come into effect starting on January 1, 2025.

The bill was approved in both its second and third readings by members of the Knesset. This move is expected to provide some relief to individuals and businesses who have struggled with paying their fines on time due to financial difficulties or other circumstances.

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