Defying Knesset, Smotrich raises tax exemption for online purchases from abroad to $130

By Sam Sokol 24 February 2026, 9:30 pm

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Sam Sokol is a former political correspondent at The Times of Israel. He was previously a reporter for the Jerusalem Post, Jewish Telegraphic Agency and Haaretz. He is the author of "Putin’s Hybrid War and the Jews"

Finance Minister Bezalel Smotrich heads a Religious Zionist party faction meeting at the Knesset in Jerusalem, February 23, 2026. (Yonatan Sindel/ Flash90)

In apparent defiance of the Knesset, Finance Minister Bezalel Smotrich signs an order expanding the value-added tax exemption on personal imports from $75 to $130, less than a day after lawmakers voted 59-25 to revoke a previous order raising the exemption to $150. The order will take effect at midnight.

In a statement on X, Smotrich says that he “will not let a handful of communists in Likud or the irresponsible opposition that is fighting against Israeli citizens win.”

“I am determined in the fight against the cost of living. The previous order already proved itself even before its expiration tonight in the Knesset. Israeli citizens stopped being captives of the monopolies, and competition has already begun to lower prices,” he argues. “It can be affordable here.”

The previous order, which went into effect on December 24, was hailed by the general public but drew sharp condemnation from local business owners who argued it would hobble their sales. They succeeded in garnering support from other members of the coalition, in particular from within Prime Minister Benjamin Netanyahu’s ruling Likud party, to revoke it following a lengthy overnight debate on Tuesday evening.

After the vote, Smotrich lashed out at members of Prime Minister Benjamin Netanyahu’s right-wing coalition for opposing his measure, branding them as part of the “left” and accusing them of linking up with the opposition and working against the government. He vowed to issue another order in place of the one that was revoked.

“What happened tonight in the Knesset plenum was the joining of two forces: the communist faction, the economic left in Likud,” and coalition MKs who “just want to hurt Prime Minister Netanyahu,” he said.

“Israeli citizens will pay more,” he added. “I’m not planning to give up. God willing, in the coming days, I will sign a new order, because I am determined, against the entire left, to prove that it can be inexpensive here.”