Electric vehicles in Israel cost from around NIS 90,000 ($28,000) to NIS 300,000 ($93,000), and more, including the purchase tax and VAT. The Tax Authority has published for public comment a team to determine the reduced purchase tax rate for electric vehicles, the luxury tax on vehicles with a consumer price higher than 300,000 NIS, and the reduction in the use value for hybrid and plug-in electric vehicles provided to employees by. Most electric vehicle importers in Israel have not significantly raised prices due to their large inventories. Following the purchase tax increase on electric vehicles from. The Knesset Finance Committee on Tuesday rejected a Finance Ministry proposal to raise the purchase tax on electric vehicles from 45% this year to 52% in 2026. Last year, the tax stood at 35% on the price of a car. This figure was up from almost nothing just half a decade ago. Amid steady growth in the automotive sector, the electrification boom has emerged as its defining trend.
