image sourced from original article at Finance Minister Bezalel Smotrich has announced an increase in the value-added tax exemption on personal imports, raising the threshold from $75 to $150. The change, effective Wednesday, is intended to make overseas purchases more affordable for Israeli consumers and to foster greater competition in the local market. Smotrich argues that the move is part of a wider effort to lower the cost of living and break the grip of monopolies that dominate several sectors of the Israeli economy.
The decision has sparked controversy, with business groups and manufacturers expressing strong opposition and warning of negative impacts on domestic industry. Protesters gathered outside the Finance Ministry, calling the measure a 'death sentence for small businesses' and urging government intervention. Despite the backlash, Smotrich maintains that the policy will benefit consumers by encouraging fair competition and reducing prices, especially in light of Israel's high cost of goods compared to other developed countries.
