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April 30, 2012 3:28 pm

Israel Lowers Sales Tax on Clean Energy Cars

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EVs charging at the Better Place visitor centre at the Pi-Glilot former gas depot in Ramat Hasharon, Israel, north of Tel Aviv. Photo: Bardak.

The Israeli government is offering tax breaks to consumers who purchase electric cars in an effort to promote clean energy transportation. The sales tax has been lowered from 10 to 8 percent for such buyers. In addition, the government decided not to raise the sales tax on hybrid vehicles.

Hybrid vehicles, which use several sources for power, have become increasingly popular in Israel, according to Israel National News. Models sold in Israel include the Honda Civic Hybrid and the Toyota Prius. The Israeli start-up company Better Place is also building a network of charging stations for fully electric vehicles throughout the country.

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