New Olim who want to either import a car themselves or buy it through a car dealer (importer) are exempt from Purchase Tax (מס קנייה) but must pay Import Tariffs (מכס) of 50% + VAT (17%). Please note: The discount is on the taxes only, not on the price of the car itself! The VAT is paid for the value of the car + the Import Tariffs. So if a car costs NIS 100,000 the Import Tariffs are NIS 50,000 and VAT of 17% is charged for NIS 150,000 = NIS 25,500. The total paid tax would be the Tariffs + VAT = 75,500, making the price of the car NIS 175,500. More information can be found here. So all in all, unlike regular Israelis, as an Oleh you pay taxes of ca. 75% of the car's value. These percentages are not exact, but serve as an approximate point of reference. The exact discount can be determined by an official car dealership only.