The Knesset has recently passed a new law that will result in reduced fines for late payment of administrative and criminal fines. Under the new regulations, the fine will now be 30 percent of the main amount of the fine, instead of the previous 50 percent. This means that those who owe fines will have more time to pay them without incurring as much penalty.
One of the key features of this law is that default interest will be added to the debt every three months without compounding. This means that the penalty will only be charged on the original debt and not on previously unpaid fines. For example, a fine of 1,000 shekels that is not paid on time will increase to 1,420 shekels in one year, not 1,600 shekels as it would have been under the previous regulations.
It’s important to note that these new regulations will not come into effect until January 1, 2025. However, this law is expected to provide some relief to those who have struggled to pay their fines on time and could help reduce financial strain for many individuals and families.