A bill has been approved by the Knesset in both the second and third readings to reduce the penalties imposed on administrative and criminal fines in cases of delayed payment. Under the new law, 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. It is important to note that these new regulations will only come into effect starting on January 1, 2025. The reduction in penalties is intended to encourage timely payment and reduce financial burden on individuals and businesses.
