New Knesset Bill Reduces Fines for Delayed Payment: What You Need to Know

The Knesset cuts penalties for late fine payments

In a recent decision, the Knesset has passed a bill that will reduce the penalties imposed on administrative and criminal fines in cases of delayed payment. Under the new law, which takes effect on January 1, 2025, the fine will be set at 30% of the original amount, rather than the previous 50%. Additionally, penalty interest will be applied to the debt every three months under the Penalty and Indexation Law, without the calculation of compound interest.

This means that a fine of 1,000 shekels that is not paid on time will increase to 1,420 shekels within a year, as opposed to the previous 1,600 shekels. The reduction in penalties is intended to encourage timely payment of fines and improve compliance with legal obligations. Members of the Knesset believe that this bill will have a positive impact on society and promote fairness in the legal system.

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