Israel cuts fuel tax amid record gasoline prices
Israel has reduced the fuel tax for two months in an effort to curb the soaring gasoline prices, which reached a record high of 8.25 shekels ($2.74) per liter due to rising oil prices caused by tensions in the Middle East and the ongoing war between the United States and Iran. This measure comes after the price of a gallon of gasoline reached $10.41, making it one of the highest globally, with excise taxes accounting for 44% of the final price and Value Added Tax (VAT) at 15%. It is expected that Minister Smotrich's decision to cut the tax by 0.5 shekels per liter will reduce the price to 7.75 shekels per liter starting from midnight on Monday, amid ongoing pressures on energy markets and fluctuations in global oil prices. This comes alongside easing monetary policy in Israel, as the Bank of Israel has lowered the interest rate for the third consecutive time in an attempt to mitigate the economic impact of rising energy prices.
Notice: This Is an AI-Generated Summary
Comments (0)