A bill has been passed by the Knesset in the second and third readings, which will result in reduced penalties for late payment of administrative and criminal fines. Under the new law, the penalty will now be 30% of the main amount of the fine, instead of the previous 50%. Additionally, penalty interest will be added to the debt every three months without compounding, meaning that the penalty will only be charged on the original debt and not on any previously unpaid penalties.
For example, a fine of 1,000 shekels that is not paid on time will increase to 1,420 shekels in a year, rather than 1,600 shekels. It is important to note that these new regulations will not go into effect until January 1, 2025. This change in legislation aims to provide relief to individuals who may have difficulty making timely payments due to financial hardship or other reasons.