Israeli government passes "green tax" on cars

The Jerusalem Post is reporting that the Israeli government passed a "green tax" on cars Sunday. The tax was first proposed by Finance Minister Ronnie Bar-On (pictured) and constructed by Boaz Sofer of the Tax Authority. Prime Minister Ehud Olmert says "the state of Israel is doing its utmost to be a leading country in the field of alternative energy, which is the energy of the future."
The tax works by sorting cars into 15 categories on a "green index" based on a 100 "green points" system that describes the car. The more green your car, the less tax you pay. So, buying an electric car will cost you a 10 percent purchase tax while a diesel SUV will be charged 60 percent. These rates remain in place until 2014, then will change to 30 percent for clean cars and 50 percent for dirty ones in 2015-2019.

Bar-On says, "This proposal puts Israel at the forefront of helping to protect the environment. ... We are committed to moving forward with this program, and it will hopefully be used as a springboard for the government to start working on other environmentally-friendly projects."

[Source: Jerusalem Post]

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