A bill has been passed by the Knesset, reducing 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.
The bill was passed in two readings and is expected to have a positive impact on individuals who may struggle to pay their fines on time. This change will make it easier for people to manage their financial obligations and avoid accumulating additional debt. It is also hoped that this bill will encourage more people to comply with laws and regulations in order to avoid facing these reduced penalties in the future.
