New Law to Ease Financial Burden for Delayed Payments

The Knesset cuts penalties for late fine payments

A bill that will reduce the penalties imposed on administrative and criminal fines in cases of delayed payment has been approved by members of the Knesset. 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 bill was introduced in response to concerns raised by members of society about the high penalties imposed for delayed payments. The new regulations aim to make it easier for individuals and businesses to manage their finances and avoid accumulating large amounts of debt.

It is worth noting that this bill was passed with overwhelming support from both sides of the political spectrum. This shows that even in such a polarized political climate, there are issues where there can be agreement and progress can be made.

A bill that will reduce the penalties imposed on administrative and criminal fines in cases of delayed payment has been approved by members of the Knesset. 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…

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