Electricity is Tax-Free, but the EV Revolution Might Change That

(Free to use image from Pixaby)

An electric vehicle or EV is a vehicle that uses one or more electric motors for propulsion rather than a gasoline engine. Electric vehicles include hybrid cars, plug-in hybrids, battery-electric cars, and fuel cell electric cars.

The idea of an electrically-powered vehicle is becoming increasingly popular as the world looks for ways to reduce its dependence on fossil fuels. Questions arise: Which types are in demand and why? Keep reading.

Benefits of Electric Cars

Electric cars offer many benefits over traditional gasoline-powered vehicles.

No Pollutants Emitted

One of the main benefits of electric cars is that they emit no pollutants. Electric vehicles don’t have tailpipes, so they don’t produce harmful emissions like carbon monoxide, nitrogen oxides, and particulate matter.

Reduced Maintenance Costs

Electric cars have far fewer moving parts than gasoline-powered cars, requiring less maintenance. You’ll never have to change the oil, for example. And because electric cars don’t produce tailpipe emissions, they don’t require tune-ups or smog checks.

Cheaper to Operate

The price of gas has been rising in recent years and Israel is no exception. Electricity remains much cheaper than gasoline, so it costs less to operate an electric car.

Reduce Israel’s Dependence on Imported Oil

Electric cars also help reduce our nation’s dependence on imported oil. Electricity is produced domestically from various sources, including solar, wind, and hydropower.

Create More Jobs in Israel

The shift to electric cars will create new jobs in Israel in various industries, including engineering, manufacturing, and installation. Expect that this will be a white-hot industry in the coming years and the countries that lead the way can expect to ride the wave to unimaginable demand.

Potential Drawbacks of Electric Cars

There are also some potential drawbacks to electric cars.

Range Anxiety

One of the people’s main concerns about electric cars is what’s known as “range anxiety.” This is the fear that the vehicle will run out of charge before reaching its destination.

Although this was a legitimate concern in the early days of electric cars, modern EVs have much longer ranges, with some capable of going more than 300 miles on a single charge.

Additionally, newer batteries on the market can charge much faster, some in as little as ten minutes. That’s not much more time than it takes to stop for gas the old-fashioned way.

Charging Infrastructure

Another concern is the lack of charging infrastructure. Although the number of public charging stations is increasing, there are still not enough to meet the needs of all EV drivers.

This means that people who don’t have access to home charging will need to plan their trips carefully to make sure they can find a charge when they need it.

Unless, of course, the brilliant idea of building the capability into the road system to charge electric cars as they drive. It’s not a reality yet but could be before long.


Electric cars are still more expensive than gasoline-powered cars, although the price is coming down as battery technology improves.

The initial cost of an EV can be several thousand dollars higher than a comparable gas car, but over time, the lower operating costs will make up for the difference.

Current Tax Situation of EV Cars In Israel

Electricity is currently tax-free in Israel. However, the government is considering changing this and introducing a tax on electricity used to charge electric cars.

The rationale behind this is that the Israeli government currently taxes the fuel industry with approximately 62 percent of the gas price.

With the popularity of EV Cars, the government will face a severe revenue shortfall as people make the switch if no changes are made.

This would significantly impact the funding of public services and infrastructure in Israel. The government is still discussing how to approach this issue, and no decisions have been made yet.

Israeli Government Move for EV Car Future Tax

The tax on gasoline and diesel-powered vehicles in Israel is much higher than in Europe, incentivizing Israelis to switch to electric cars.

However, due to the popularity of EV Cars, the Israeli government reported a loss of revenue from gasoline. To make up for this loss, the government is considering increasing taxes on electric cars.

In Israel, the Finance Ministry is pushing the Transport and Environment Ministries to increase the purchase tax on electric vehicles.

Finance is looking for a 20% raise, while the other two are only looking for a 10% boost. Whatever Israelis think about it, their government will figure out how to collect the $6 billion in yearly losses.

The Bottom Line

Electric cars are becoming increasingly popular, and the Israeli government is considering how to tax them. The current tax situation is that electricity is tax-free, but this may change in the future. Electric cars offer many benefits, but there are also some potential drawbacks. Overall, electric vehicles have the potential to reduce Israel’s dependence on imported oil and create new jobs in the economy.

About the Author
Bernard Brode is a nanotechnology product researcher and believes that it might end up being the biggest tech story of all time.
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