Reduced Penalties for Late Fine Payments: What You Need to Know

The Knesset has recently passed a bill that will significantly reduce the penalties for late payment of administrative and criminal fines. Under the new law, the penalty will be 30% of the main amount of the fine instead of the previous 50%. Additionally, interest on the debt will be added every three months without compounding, meaning that only the original debt will be charged with penalty interest and not any previously unpaid penalties.

For example, if someone is fined 1,000 shekels and fails to pay it on time, they will owe an additional 420 shekels in a year, rather than the previous 600 shekels. It is worth noting that these new regulations will not take effect until January 1, 2025.