A year has gone by since the green tax reform was implemented, and the Israel Tax Authority has published an analysis of its effect on automobile sales in Israel, Calcalist reported Wednesday.

In the framework of the reform, implemented August 2, 2009, purchase tax on passenger vehicles increased from 75% to 90% (and went back down to 83% at the end of 2009). Concurrently, thousands of shekels were deducted from the purchase tax in accordance with the emission level of the vehicle.

A linear use value chart was published in January, according to which the value of the use of each car will be deducted as a percentage of its price, in an effort to allow employees who want a clean car to benefit from a reduced price.

According to a Tax Authority analysis, a “positive trend” is apparent. Tax officials stress that the average green score for passenger vehicles sold in Israel from June 2008 to July 2009 was 199. By comparison, the score from August 2009 to June 2010 decreased by 4% to 190.9 (a high score indicates high emission levels).

Tax Authority officials also stated that the supply of environmentally friendly cars is increasing. They emphasized that the emissions scale will be revised in 2012, making the criteria for obtaining green grades more stringent, which will directly influence the tax imposed on the cars.

Despite tax authority assertions regarding the success of the green tax reform, sources in the automobile sector voiced very different opinions. According to a senior official in the sector, the prices of popular cars are virtually identical, despite the fact that their emission levels differ.