[Nothing like an election to get a politician to take the right steps]
Minister of Finance Avigdor Liberman, published orders for a further reduction of the tax on gasoline, in order to ease the cost of living and to reduce the price of fuel by an additional half shekel starting on August 1st.
This tax reduction joins a reduction that is already in effect, which results in a reduction in the price of fuel by half a shekel per liter so that in total the price of fuel will be reduced starting August 1 by a shekel per liter, relative to its price without tax reductions.
This is roughly 12% of the current price for 1 liter of gas in Israel.
According to the published orders, the purchase tax and excise tax on gasoline will decrease from 3,184.31 new shekels per thousand liters to 2,329.61 new shekels per thousand liters, starting from August 1 until August 31, 2022. After that, the rate of excise tax and purchase tax will be On NIS 3,154.31 per thousand liters, for the period from September 1, 2022 to January 31, 2023.
These orders follow on from similar orders that reduced the tax on diesel fuel by half a shekel until the end of 2022. The loss of tax revenue as a result of the currently proposed reductions is estimated at NIS 354 million.
