In a major development, the Knesset has passed a bill in the second and third readings that will result in reduced penalties for late payment of administrative and criminal fines. Under the new law, which goes into effect on January 1, 2025, 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 under the old regulations. However, under the new regulations, it will only increase to 1,380 shekels. This means that individuals and businesses who fall behind on their fines will see a significant reduction in their overall costs.
The new law is aimed at encouraging timely payment of fines while also providing some relief to those who may have difficulty paying them on time. It is an important step towards creating a more fair and equitable system for administering justice in Israel.
