Israel's parliament voted 59 to 25 to revoke a measure that had expanded tax exemptions on low-cost online purchases from abroad. The order, introduced by Finance Minister Bezalel Smotrich, had raised the exemption threshold from 75 dollars to 150 dollars, removing an 18 percent value added tax on eligible personal imports.

The policy, which took effect in late December, was popular among consumers but drew strong opposition from local business owners who argued it would harm domestic retailers. Several lawmakers from the ruling Likud party opposed the move, calling it a subsidy for foreign companies at the expense of Israeli industry. It is highly unusual for the parliament to overturn a ministerial order.

Prime Minister Benjamin Netanyahu initially sought to enforce coalition discipline but later allowed lawmakers to vote freely. The decision followed a lengthy and heated parliamentary session, during which small business protesters were removed from the gallery. Smotrich said he intends to introduce a new order, insisting he remains committed to lowering the cost of living.