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Reducing Administrative and Criminal Fine Penalties: A Path towards Compliance?

The Knesset cuts penalties for late fine payments

Reducing Administrative and Criminal Fine Penalties: A Path towards Compliance?

In a significant move, the Knesset has approved a bill that will reduce the penalties imposed on administrative and criminal fines in cases of delayed payment. Under the new law, which was passed in both the second and third readings, the fine will be set at 30% of the original amount, rather than the previous 50%. Additionally, penalty interest will be applied to the debt every three months under the Penalty and Indexation Law, without the calculation of compound interest.

This means that a fine of 1,000 shekels that is not paid on time will increase to 1,420 shekels within a year, as opposed to the previous 1,600 shekels. It is important to note that these new regulations will only come into effect starting on January 1, 2025.

The bill was introduced by MK Avichai Adler (Likud) and was supported by a majority of Knesset members. The aim of the bill is to provide relief to individuals and businesses who may struggle to pay their fines on time due to financial difficulties or unforeseen circumstances.

Under this new law, individuals and businesses will have more time to pay their fines without facing severe penalties. This could potentially lead to more compliance with legal obligations and fewer cases of non-payment.

It is worth noting that this bill does not apply to all types of fines. For example, traffic violations and parking tickets are still subject to their original penalties. However, this change could have a significant impact on individuals and businesses who may struggle with paying fines on time.

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