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The car tax in Israel has been historically the highest compared to any other country in the world, except for Denmark. The vehicle purchase tax was adjusted in 2005, 2009 and 2013. The Israeli experience sets a precedent for a tax that takes all pollutants into account.
Israel’s growing population and rising incomes have seen consumption increase substantially, bringing with it considerable pressure on the environment. One of the main environmental pressures is from the ever-increasing transport activity, especially the use of private vehicles. Although travelling in a private vehicle brings benefits to the individual using it, this entails costs to society as a whole.
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The Survey of Adult Skills (PIAAC) directly measures proficiency in several information-processing skills – namely literacy, numeracy and problem solving in technology-rich environments.
Poor skills severely reduce a person’s chance of a better-paying and more-rewarding job, and have a major impact on how the benefits of economic growth are shared within societies. In countries where large shares of adults have poor skills, it is difficult to introduce productivity-enhancing technologies and new ways of working, which stalls improvements in living standards, according to a new OECD report.
The answer to the question "how's life?" depends on where you live. The factors that determine well-being can vary dramatically across the same country so national averages may not provide the full picture. See our regional indicators to see exactly how life is being lived.
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Israel has built a universal health system at relatively low-cost. Health spending was 7.5% of GDP in 2013, below the OECD average of 8.9% although the health spending share of GDP has been increasing rapidly, particularly in recent years. Israel has developed a sophisticated programme to monitor quality of primary care.
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This policy profile is part of the Education Policy Outlook series, which presents comparative analysis of education policies and reforms across OECD countries.
Israel is a young country with still dynamic population growth, but it is already beginning to face the consequences of population ageing.
Promoting competition to enhance productivity at the firm level and resulting income and growth improvement and a lower cost of living is an important economic and social challenge in Israel.
I know that I am joining a small, and exceptionally distinguished circle, including President Shimon Peres, whom I have welcomed personally to the OECD in Paris. In five years, Israel has become an important contributor to the OECD’s work. Its expertise on key areas of our economies, like water management, “clean tech”, innovation and entrepreneurship, has become a source of best practices.