After lengthy discussions, the Knesset’s Finance Committee approved the bill on vehicle congestion fees in the Tel Aviv metropolitan area for a second and third reading in the plenum. The bill states that “the purpose of the law is to reduce traffic congestion on the roads and reduce the high cost to the economy and the damage associated with the quality of life and the environment, by imposing a special tax on incoming and outgoing vehicles.
Finance: Congestion fee to raise NIS 1.3 billion a year
The cabinet approves a congestion charge in Tel Aviv
A congestion charge will extend far beyond Tel Aviv
According to the data and estimates presented to the Finance Committee, the tax will bring NIS 1.3 billion into the state coffers each year, and according to the law, part of this amount will be transferred to finance public transportation projects such as the light rail and the metro.
According to the bill, the congestion charge in the Tel Aviv metropolitan area will be divided into internal, middle and external rings with charges to be levied for entry during the morning and evening rush hours. The inner ring will include the center and south of Tel Aviv. The middle ring will include Ramat Gan, Givatayim, Bnei Brak, Holon and Bat Yam and the surrounding area. The outer ring will include Herzliya, Petah Tikva, Kiryat Ono, Givat Shmuel, Ganei Tikva, Yehud Monosson, Or Yehuda, Rishon Lezion and Beit Dagan.
Between the hours of 6: 30-10: 00 for vehicles traveling in the direction of Tel Aviv, entry to the outer ring will cost 5 NIS, entry to the middle ring 10 NIS and an additional 10 NIS to enter the inner ring for a maximum of 25 NIS. Between 3 pm and 7:00 PM, cars in both directions will pay NIS 2.50 for entry to the outer ring, NIS 5 for entry or exit from the middle ring and an additional NIS 5 for entry or exit from the inner ring. Motorcycles (and scooters), buses and emergency vehicles Will travel for free, while trucks will pay double.Taxis will pay 50% which will be added immediately to the fares of their passengers.
The bill will be imposed from March 2025, a year later than originally planned and there is a section in the bill that gives finance and transportation ministers the discretion to postpone the bill until March 2026. A government company will be established to plan, set up, operate and maintain the project including all signs, cameras and other infrastructure Collection of the payment.
Published by Globes, Israel Business News – en.globes.co.il – on October 22, 2021.
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