Congestion Tax Law for the Reduction of Traffic Congestion in the Gush Dan Area, 5782-2021

חוק מס להפחתת גודש התנועה באזור גוש דן, תשפ"ב-2021

Published: 2021-11-18Consolidated Hebrew text as of 2025-03-01 · Last amended 2023-11-19✓ Amendment status checked against the Knesset legislation record on 2026-09-28

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Chapter IX: Appeal and Enforcement of Payment

Submission of an Appeal§

44.

(a)A liable person may submit an appeal against a liability notice to an appeals committee, within 45 days from the day the liability notice was sent to them.

(b)The submission of an appeal shall not defer the date of payment pursuant to the liability notice, unless the appeals committee has decided otherwise.

(c)An appeal shall be submitted in writing and shall include the arguments and copies of the documents relevant to the matter, including the liability notice and the detailed information transferred to the liable person pursuant to section 32, or pursuant to section 33 if a clarification process was conducted pursuant to that section.

Appeals Committee§

45.

The Minister of Finance shall appoint one or more appeals committees, each consisting of a single adjudicator who is qualified to serve as a Magistrate's Court judge, selected from a list submitted by the Minister of Justice, whose function is to hear appeals against liability notices pursuant to the provisions of this Chapter (in this Law – appeals committee).

Jurisdiction on Appeal§

46.

The appeals committee is empowered to confirm the liability notice that is the subject of the appeal, to annul it, or to remit it to the Tax Authority with directions.

Manner of Proceedings in the Appeals Committee§

47.

(a)The appeals committee shall deliberate and decide on an appeal on the basis of arguments and evidence submitted in writing only, unless it finds that doing so would prejudice the doing of justice in the matter of the parties.

(b)Where the appeals committee has decided to hold a hearing with the participation of the parties, it may hold the hearing by technological means if the Minister of Justice has prescribed procedural rules for the conduct of such a hearing; for this purpose, "technological means" – means that enable the transmission of image and sound in real time, by which the participants in the hearing can be heard and seen and by which a person may also be heard during the course of the hearing.

Appeal§

48.

A final decision of the appeals committee is subject to appeal as of right before the Magistrate's Court, within 45 days from the day the final decision was given.

Application of the Provisions of the Administrative Courts Law§

49.

The provisions pursuant to the Administrative Courts Law, 5752-1992, with the exception of sections 22(a), 26(c), 37 and 45 of that Law, shall apply to an appeal and to an appeals committee, with the necessary modifications.

Electronic Record – Admissible Evidence§

50.

The provisions of section 4i of the Fast Lanes Law, 5760-2000, including the Regulations made thereunder, shall apply for the purposes of this Law, with the necessary modifications, unless otherwise provided in this Law.

Regulations§

51.

The Minister of Justice may make Regulations regarding rules of procedure and rules of evidence and regarding administrative procedures in the appeals committee.

Status of a Liability for the Purposes of a Payment Refuser§

52.

(a)In this section –

"arrears charges" and "shekel interest" – as defined in the Interest and Linkage Law, 5721-1961;

"linkage differentials" – linkage differentials as defined in the Interest and Linkage Law, 5721-1961;

"final debt" – a liability for the payment of tax that has not been paid and whose payment date has passed;

"the determining date" – the date on which a liability became a final debt;

"arrears interest" – (deleted)

(b)A final debt that has not been paid, in whole or in part, within 15 days of the determining date, shall have linkage differentials added to it, from the determining date until the end of three months from the determining date.

(c)At the end of three months from the determining date, a late payment supplement at a rate of 25% of the final debt or part thereof and of the linkage differentials, whichever has not been paid, as the case may be, shall be added to a final debt that has not been paid, in whole or in part, and to the linkage differentials calculated in accordance with the provisions of subsection (b) (in this Law – late payment supplement), and from that date onwards shekel interest and arrears charges shall be added to the final debt and to the linkage differentials, excluding the late payment supplement.

(d)A final debt, linkage differentials, a late payment supplement and a supplement of shekel interest and arrears charges shall be collected through the Fines, Fees and Costs Collection Authority as its meaning in the Fines, Fees and Costs Collection Authority Law, 5755-1995.

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Chapter X: Miscellaneous Provisions

Investment in Public Transport§

53.

In an annual budget law as defined in the Budget Foundations Law, 5745-1985, an amount equivalent to the estimated revenues expected for that fiscal year from the congestion tax, and not exceeding the sum of NIS 700,000,000, shall be designated in a separate programme for the improvement of the operation of public transport services.

Implementation and Regulations§

54.

The Minister of Finance is responsible for the implementation of this Law, and he may, after consultation with the Minister of Transport, make Regulations for its implementation.

Amendment to the Administrative Courts Law – No. 18§

55.

In the Administrative Courts Law, 5752-1992, in the Schedule, after item 29 the following shall be inserted:

"30. An appeals committee pursuant to section 45 of the Congestion Tax Law for the Reduction of Traffic Congestion in the Gush Dan Area, 5782-2021."

Commencement§

56.

(a)This Law shall commence on the day of commencement of the Economic Efficiency Law (Legislative Amendments for Achieving Budget Targets for the Budget Years 2021 and 2022), 5782-2021 (in this Chapter – the commencement day).

(b)Notwithstanding the provisions of subsection (a), sections 2, 3, 10 to 13, 16, 17, 33, 44 to 48 and 52 shall commence on the 1st of Adar 5785 (1 March 2025) (in this Chapter – the determining day).

(c)The Ministers, after consultation with the Implementation Committee, may defer the determining day once, by Order, to no later than the 12th of Adar 5786 (1 March 2026).

(d)Notwithstanding the provisions of subsection (b), section 12(b) shall commence five years from the determining day, or, if it was deferred pursuant to subsection (c), from the date to which it was deferred.

First Regulations§

57.

The first Regulations for the purposes of section 3(b) shall be made no later than six months before the determining day, or, if it was deferred pursuant to section 56(c), before the date to which it was deferred.

First Actions§

58.

The actions pursuant to this Law set out below shall be carried out for the first time after the commencement day, at the times specified alongside them:

(1)the Minister of Finance shall determine for the first time the locations of the gates as referred to in section 8 – no later than 15 months before the determining day;

(2)the Ministers shall appoint an Appointed Company as referred to in section 23 – within thirty days of the commencement day.

Reporting to the Knesset§

59.

(a)The Ministers shall report to the Finance Committee of the Knesset, once a year, commencing from March 2023, on all of the following:

(1)technological developments for the continuous monitoring of vehicles and for the determination of equilibrium tariffs;

(2)an updated comparative study from countries around the world regarding methods of determining congestion payments;

(3)efficiency indicators of the congestion tax in Israel and additional statistical data;

(4)the position of the Implementation Committee regarding the need to amend the legislation and to adapt it to current technology;

(5)an examination of the implementation of an equilibrium tariff model and its feasibility on the basis of the charging ring model existing in this Law;

(6)investment in the development of public transport;

(7)the change in the frequency of public transport and in the transport infrastructure established since the commencement day.

(b)In this section –

"road segment" – an area to be determined by the Minister of Finance, with the consent of the Minister of Transport, whether by defining a fixed length of road or by determining a road bounded by clear boundaries;

"continuous monitoring" – a mobile electronic means or one permanently installed in the vehicle, which shall calculate the distance travelled by the vehicle in each of the charging rings or road segments; the continuous monitoring shall be carried out with due regard, to the extent possible, to the protection of privacy and in a manner whereby the electronic monitoring component shall transmit to the collection system the amount of tax imposed in respect of the journey; the remaining data, including the location of the vehicle and the time of its journey, shall be received by the monitoring means and shall not be transmitted; the monitoring component shall automatically perform the accounting and shall transmit the amount of the tax only;

"equilibrium tariffs" – a tax amount that shall create, to the extent possible, optimisation in each road segment between the number of journeys seeking to pass through it in a given period of time and the capacity of the road segment on that route; the greater the number of vehicles moving in each road segment at a given hour is below the capacity of the road segment, the lower the rate of tax imposed, or no tax shall be imposed; the greater the number of vehicles moving in each road segment at a given hour is above the capacity of the road segment, the higher the rate of tax imposed.

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First Schedule (Sections 4 and 8)

Second Schedule (Section 11)

Second Schedule (Section 11) — table
Column A Travel Hours Range	Column B Direction of Travel	Column C Charging Ring whose Boundary is Crossed	Column D Tax Amount (in New Israeli Shekels)
1. 6:30 to 10:00	Towards the Congestion Centre	Outer ring	5
—	—	Middle ring	10
—	—	Inner ring	10
2. 15:00 to 19:00	Towards the Congestion Centre	Outer ring	2.5
—	—	Middle ring	5
—	—	Inner ring	5
3. 15:00 to 19:00	From the Congestion Centre towards the Outer Ring	Outer ring	2.5
—	—	Middle ring	5
—	—	Inner ring	5

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Third Schedule (Section 17)

Third Schedule (Section 17) — table
	Type of Vehicle	Method of Tax Liability
1.	A bus as defined under the Traffic Ordinance [New Version], excluding a private minibus as defined under the Traffic Ordinance [New Version]	Exempt from payment of tax
2.	A taxi as defined in the Traffic Ordinance [New Version], in respect of which a service-trip licence has been granted, while it is making a service trip on the taxi service route specified in the trip licence; for this purpose – "service-trip licence", "taxi service route" – as defined in section 14z of the Traffic Ordinance [New Version]; "service trip" – as defined under section 14k of the Traffic Ordinance [New Version]	Exempt from payment of tax
3.	A disabled person travelling in a vehicle bearing a disabled person's tag shall be exempt from payment of the tax; for this purpose, "disabled person" and "disabled person's tag" – as defined in the Disabled Persons Parking Law, 5754-1993	Exempt from payment of tax
4.	An accessible taxi as defined under the Equal Rights for Persons with Disabilities Law, 5758-1998	Exempt from payment of tax
5.	A motorcycle or three-wheeled motorcycle as defined under the Traffic Ordinance [New Version], as well as a motorcycle with a sidecar or with a trailer or without them	Exempt from payment of tax
6.	A commercial vehicle as defined in the Traffic Ordinance [New Version] whose permitted weight exceeds 12,000 kg	Shall be charged double the amount of tax set out in the Second Schedule and the maximum daily charge limit shall not apply to it
7.	A taxi as defined in the Traffic Ordinance [New Version], which is not a service taxi as defined in item 2	Shall be charged half the amount of tax set out in the Second Schedule and the maximum daily charge limit shall not apply to it
8.	A bicycle with an auxiliary engine or a scooter as defined under the Traffic Ordinance [New Version], and a tricycle as defined under the Traffic Ordinance [New Version]	Exempt from payment of tax
9.	A security vehicle	Exempt from payment of tax
10.	A rescue vehicle as defined under the Traffic Ordinance [New Version]	Exempt from payment of tax

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Congestion Tax Law for the Reduction of Traffic Congestion in the Gush Dan Area, 5782-2021

Chapter IX: Appeal and Enforcement of Payment

Submission of an Appeal§Cite ✦

Appeals Committee§Cite ✦

Jurisdiction on Appeal§Cite ✦

Manner of Proceedings in the Appeals Committee§Cite ✦

Appeal§Cite ✦

Application of the Provisions of the Administrative Courts Law§Cite ✦

Electronic Record – Admissible Evidence§Cite ✦

Regulations§Cite ✦

Status of a Liability for the Purposes of a Payment Refuser§Cite ✦

Chapter X: Miscellaneous Provisions

Investment in Public Transport§Cite ✦

Implementation and Regulations§Cite ✦

Amendment to the Administrative Courts Law – No. 18§Cite ✦

Commencement§Cite ✦

First Regulations§Cite ✦

First Actions§Cite ✦

Reporting to the Knesset§Cite ✦

First Schedule (Sections 4 and 8)

Second Schedule (Section 11)

Third Schedule (Section 17)

Submission of an Appeal§

Appeals Committee§

Jurisdiction on Appeal§

Manner of Proceedings in the Appeals Committee§

Appeal§

Application of the Provisions of the Administrative Courts Law§

Electronic Record – Admissible Evidence§

Regulations§

Status of a Liability for the Purposes of a Payment Refuser§

Investment in Public Transport§

Implementation and Regulations§

Amendment to the Administrative Courts Law – No. 18§

Commencement§

First Regulations§

First Actions§

Reporting to the Knesset§