New Budget Proposes Complete End to Electrical Vehicle Tax Breaks

The Finance Ministry's budget proposal for 2024 includes an end to the sales tax breaks for electrical vehicles compared to gas-powered ones, as well as an end to or reduction of government subsidy of new charging stations, according to a report by Globes.

According to the plan, the sales tax on electrical vehicles will rise from its current rate of 35% to 50% in 2025, 57% in 2026, and 65% in 2027, effectively equalizing with the sales tax paid for gas-powered cars.

The budget also includes an end to or reduction of government subsidy of new charging stations, although this decision will not affect existing stations.