A bill that will reduce the penalties imposed on administrative and criminal fines in cases of delayed payment has been approved by members of the Knesset. Under the new law, which takes effect on January 1, 2025, the fine will be set at 30% of the original amount, rather than the previous 50%. Additionally, penalty interest will be applied to the debt every three months under the Penalty and Indexation Law without compound interest.
As a result of these new regulations, 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. This means that individuals and businesses who are unable to pay their fines on time will have more time to settle them before they accrue additional penalties. The aim of this bill is to provide more flexibility for those who owe fines and give them more time to pay them off without facing excessive financial strain.
