A bill passed by the Knesset in its second and third readings will result in reduced penalties for late payment of administrative and criminal fines. Under the new law, the penalty will now be 30% of the main amount of the fine, instead of the previous 50%. This means that if a person is fined 1,000 shekels and fails to pay it on time, they will only have to pay an additional 300 shekels in penalties, instead of 600 shekels as before.

The new law also includes a provision that penalty 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 any previously unpaid penalties. For example, a fine of 1,000 shekels that is not paid on time will increase to 1,420 shekels in a year, rather than 1,600 shekels.

It is important to note that these new regulations will not go into effect until January 1, 2025. This gives individuals and organizations ample time to adjust their payment schedules accordingly and avoid unnecessary penalties.