My daughter recently turned 18. After she did, we went down to the offices of Bituach Leumi to register her. Until 18, children are included in the parents account with Bituach Leumi - when I pay my fees to Bituach Leumi, it covers my children as well. Once they hit 18 though, the kids are considered adults and are on their own. They need to register and pay their own Bituach Leumi bills.

It really should be automatic. The kid hits 18 and Bituach Leumi should send him or her a notice and a bill and life goes on. But they do not. They make you, or expect you, to go register yourself in their system. Unfortunately, many people do not do so. Either they don't know they are supposed, or they think it will be automatic, as it should be, or they postpone until they eventually forget about it.

Nothing really happens, so people tend to not think about it. Until it does.

One day,  usually a bunch of years later, a bill from Bituach Leumi arrives in the mail saying you owe something to the tune of 10,000 NIS for x years of unpaid  Bituach Leumi bills plus interest and collection fees.

Another scenario is someone who leaves Israel for a number of years. When abroad they do not bother paying Bituach Leumi, because why should they. They do not realize the tab keeps ticking. I think technically before you leave the country you can have them freeze your account, but many people do not do that - either not know they can or that they should.

Then, many years later, this person decides to return to Israel. Sure enough they are slapped with a Bituach Leumi bill with an astronomical figure at the bottom - for all those unpaid bills plus interest and collection fees.

To resolve this, MK Tamar Zandberg (Meretz) has submitted a law proposal that would require the Bituach Leumi and the Broadcasting Authority to send citizens reports of how much money they owe before they begin tacking interest and fines on the amount.

Zandberg says the current law creates an absurd situation in which Bituach Leumi has interest in not being transparent in order to accumulate fines and interest, and thereby increase their revenues. You end up with these large bills with fines tacked on, without ever even having received an original bill to pay.
(source: NRG)

If Zandberg has her way, this will come to an end and they will have to send original bills and notices before tacking on fees and interest.

I hope this law passes. I know too many people who have found out the hard way.. some were able to negotiate down somewhat, and others had to agree on payment plans... It is not right, and it is about time this process was put to an end.