Israel’s government is charging one of the highest rates worldwide for the gasoline sold in the Jewish State.
In fact, the relative price of gasoline adjusted to the dollar rate in Israel is among the top ten worldwide, with the price at $1.35 per liter, according to a report published this week by the Globes business news site.
When the maximum price of 95 octane gasoline at self-serve pumps in Israel dropped April 1st by NIS 1.03 to NIS 4.89 per liter, Israelis who were still driving on the road reaped the benefits.
But the tax on the gasoline didn’t change at all.
In fact, according to the report, that drop meant the tax rate actually rose to a high of 78 percent of the price of a liter of gasoline. That put Israel into first place for highest taxes on gasoline in the world.
Last month, the price of gasoline dropped by 63 percent to NIS 0.55 per liter after the price of oil collapsed on world markets due to the COVID-19 pandemic. But the NIS 3.074 excise price per liter didn’t budge.
Hence the ridiculous, historically high tax (excise and VAT) of 78 percent of the price of a liter of gasoline – which, given the current economic and employment situation in the Jewish State, makes no sense at all.