New Bill to Ease Financial Burden: Reduced Fines for Delayed Payments in Israel

The Knesset cuts penalties for late fine payments

A bill that reduces the penalties imposed on administrative and criminal fines in cases of delayed payment has been approved by members of the Knesset in both the second and third readings. Under the new law, the fine will be set at 30% of the original amount, instead of the previous 50%. Additionally, penalty interest will be applied to the debt every three months under the Penalty and Indexation Law, without the calculation of 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. It is important to note that these new regulations will only come into effect starting on January 1, 2025. This change will provide relief for those who may struggle to pay their fines on time due to financial difficulties or unforeseen circumstances.

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