Finance Ministry is considering temporarily raising the tax on gasoline

The Finance Ministry is considering temporarily raising the excise tax on gasoline - Globes has learned. This is in the context of attempts to reduce the expected severe damage to the state's income in the light of the Corona crisis.
The initiative comes against the backdrop of the expected drop in fuel prices in the coming month, with the idea being to raise the excise tax on fuel in a way that will reduce or even eliminate it completely. In addition, the partial downturn of the economy and the closure greatly reduce the public's use of a private vehicle, which may slightly sweeten the decree.
On the other hand, revenue growth is not expected to be dramatic at this stage either. Fuel tax revenues reach NIS 20 billion a year.
The Treasury is currently feverishly looking for sources to increase tax revenues, against the backdrop of very bleak forecasts for the expected decline in state revenues as a result of the Corona crisis. Raising the excise duty on gasoline is a relatively simple step that does not require the Knesset's approval. All it takes is the Finance Minister's signature on an order to raise the excise tax.
Today, the state charges an excise duty of NIS 3.07 per liter of gasoline and another 86 cents per liter of VAT.
The oil price crash should lead to a sharp drop in gasoline prices. It is estimated that gasoline prices may fall by 80 to 90 cents per liter at the end of the month.