The congestion charge goes far beyond Tel Aviv


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From March 2024, traveling by car throughout the metropolitan region of Tel Aviv will involve paying a congestion fee, according to the latest draft law on economic arrangements submitted to the Knesset, which follows the government budget.

Not only is the congestion collection plan advancing, but a map of the area to be included in the plan has been published for the first time as part of the law. The planned congestion fee will be collected from the three rings. The inner ring will include central and southern Tel Aviv. The middle ring will include Ramat Gan, Givatayim, Bnei Brak, Holon and Bat Yam and Azur. The outer ring will include Herzliya, Petah Tikva, Kiryat Ono, Givat Shmuel, Ganei Tikva, Yehud Monoson, Or Yehuda, Rishon Lezion and Beit Dagan.

The congestion charge will be the cheapest in the outer ring and the most expensive in the inner. The maximum fee for entering all three bells during the morning or evening rush hours will be 25 NIS.

Establishment of a financial company

In order to implement the Law, a state-owned financial enterprise will be established. The role of the new company will be to plan, build, manage and maintain the funds needed to collect the congestion fee. Although the 2024 congestion compensation start date reportedly leaves a lot of time to prepare, setting up a new body in Israel, including appointing a manager and setting a budget, is not an easy task.

The new company will face major challenges, including planning, setting up and managing cameras throughout Tel Aviv’s metropolitan area to document three-ring traffic and legally set ring boundaries. The Israeli tax administration will be responsible for collecting the congestion fee, and the new financial company may collect the fee on its behalf.

New implementation committee

The draft law on economic arrangements envisages the establishment of a new implementation committee that will recommend to the government any change in the boundaries of the proposed ring, a change in the hours for imposing the tax and much more. The board will have six members, including representatives of the Ministry of Finance, the Ministry of Transport and the Israeli Tax Administration.

The draft law on economic arrangements also states that buses, taxis and cars with parking markings for the disabled will be exempt from paying the tax. Truck drivers will have to pay double the standard fee for over-contributing to congestion and air pollution and to encourage them to drive during peak hours.

Published by Globes, business news in Israel – en.globes.co.il – August 31, 2021

Copyright by Globes Itonut (1983) Ltd. 2021


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