Israel Extends Luxury Car Tax to Green Vehicles as Imports Soar

A temporary surtax on imported luxury cars purchased in Israel will become permanent June 20 and for the first time will extend to electric-powered cars and plug-in hybrids.

An order signed by Finance Minister Moshe Kahlon June 10 imposes the taxes on all cars costing more than 300,000 shekels ($83,700).

Electric and hybrid cars will still receive the tax credit available for all low-emission vehicles, but the sales tax will go up to a maximum of 34 percent from 20 percent for electric vehicles and to 44 percent from 30 percent for hybrids in the luxury category. That’s ...