The Knesset cuts penalties for late fine payments
Economy

New Law Eases Financial Burden on Fines: Reduced Penalties and Interest Set for Delayed Payment in Israel

A bill that reduces the penalties imposed on administrative and criminal fines in cases of delayed payment has been approved by the Knesset in both the second and third readings. Under the new law, which will take 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 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. The new regulations are intended to provide relief to individuals and businesses who may struggle to pay their fines on time due to financial difficulties or other circumstances. By reducing the penalties imposed, these individuals and businesses can avoid significant financial burden and better manage their debts.

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