The Knesset rejected a proposal to expand the value added tax exemption on imported goods, dealing a setback to Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich. The measure received 25 votes in favor and 50 against.

Members of Knesset from Otzma Yehudit and several from Likud voted against the proposal, alongside others from coalition parties. A notable number of ultra Orthodox lawmakers and several senior government ministers were absent from the vote.

Following the defeat, Smotrich sharply criticized what he described as an 'economic left' faction within Likud, accusing them of siding with monopolies and engaging in internal political maneuvering. He announced that he intends to sign the order again soon, signaling that the government will attempt to advance the measure once more.