Israel's parliament rejected Finance Minister Bezalel Smotrich's order to double the value added tax exemption ceiling on personal imports to 150 dollars, dealing a significant blow to Prime Minister Benjamin Netanyahu's coalition. The measure was voted down by a wide margin after several lawmakers from Netanyahu's own party joined the opposition. Netanyahu did not attend the late night vote.

Smotrich argued the move was intended to lower the cost of living and reduce prices for online purchases, but critics said it would severely harm small and local businesses. Lawmakers opposing the plan warned it would amount to a 'death sentence' for many small businesses already struggling with high costs in housing, rent, and food.

Following the defeat, Smotrich accused dissenting coalition members of engaging in petty politics and vowed to introduce a new order to pursue the policy. Opposition leaders celebrated the outcome, saying it exposed deep fractures within the government and demonstrated that Netanyahu could no longer command a stable majority in parliament.