A bill has been passed by the Knesset, resulting in reduced penalties for late payment of administrative and criminal fines. The new law will see the penalty amount reduced to 30% of the main amount of the fine, down from the previous 50%. Additionally, penalty interest will be added to the debt every three months without compounding.
Under this new regulation, 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 as it would have been under the previous law. It is important to note that these new regulations will not go into effect until January 1, 2025.
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