New Fine Reduction Law in Israel Offers More Time and Lower Penalties for Delayed Payments

The Knesset cuts penalties for late fine payments

The Knesset has approved a bill that will reduce the penalties imposed on administrative and criminal fines in cases of delayed payment. Under the new law, 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 those who are unable to pay their fines on time will have more time to do so without facing as much financial burden.

The new law sets the fine 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 those who are unable to pay their fines on time will still have an incentive to do so as soon as possible.

It is important to note that these new regulations will only come into effect starting on January 1, 2025. However, they are expected to have a positive impact on those who may struggle financially and need more flexibility when it comes to paying their fines.

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