New Knesset Bill to Soften Late Payment Penalties for Administrative and Criminal Fines

A bill passed by members of the Knesset in the second and third readings will result in reduced penalties for late payment of administrative and criminal fines. Under the new law, 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, rather than 1,600 shekels under the old regulations. It is important to note that these new regulations will not go into effect until January 1, 2025.