Likud MK Bitan says Smotrich ‘thinks he’s Trump,’ calls VAT exemption an election bid

Ariela Karmel is a political correspondent at The Times of Israel. She previously reported for Calcalist and Haaretz. She holds an MA in Middle Eastern and African History from Tel Aviv University and a BA in Political Science from the University of British Columbia.

Likud MK David Bitan leads an Economic Committee meeting at the Knesset in Jerusalem, February 25, 2026. (Yonatan Sindel/Flash90)
Likud MK David Bitan leads an Economic Committee meeting at the Knesset in Jerusalem, February 25, 2026. (Yonatan Sindel/Flash90)

Likud MK David Bitan says Finance Minister Bezalel Smotrich erroneously thinks he can force the passing of his VAT exemption order, which Bitan accuses of being a cynical ploy to gain popularity leading up to elections.

“Smotrich probably thinks he’s Trump, but that’s not the case. He doesn’t have unlimited powers,” says Bitan in a radio interview with the Kan public broadcaster. “For three and a half years, he did nothing on the cost of living issue, and now, suddenly, two to three months before the elections, he’s pushing this.”

A national election is set to be held by October, but is likely to be called earlier.

Smotrich signed an order yesterday expanding the value-added tax exemption on personal imports from $75 to $130, hours after lawmakers voted to revoke his previous order, which raised the exemption from $75 to $150. The new order took effect at midnight last night.

Smotrich’s previous order 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 Monday evening.

Bitan says he will work to overturn the new order as well.

“He’s not God,” the Likud lawmaker says, adding that Smotrich “should have respected the Knesset’s decision.”

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