From Smotrich expands VAT exemption on personal imports from $75 to $150
Add ToI as a Preferred Source on GoogleSam 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"
In a move aimed at combating the rising cost of living, Finance Minister Bezalel Smotrich has decided to “dramatically expand the VAT ( Value Added Tax) exemption on personal imports” from $75 to $150, the Finance Ministry announces.
In a statement, the ministry says that Smotrich aims to “ease the cost of living” and “remove from monopolies and companies that control the economy the ability to charge Israeli consumers higher prices than in most European countries.”
Market concentration has led to “a high and unjustified price level for all households,” while “the purchasing power of Israeli citizens is lower than that of most European countries, with Israel ranked 22nd out of 38 countries,” the ministry continues.
Along with its statement, the ministry publishes a copy of Smotrich’s order for public comment before it is signed and implemented.
Israel is ranked fourth place in the organization’s list of developed countries with the highest comparable prices, according to the Organisation for Economic Co-operation and Development. Last year, the OECD reported that food and beverage prices in Israel were 52 percent higher than the average among developed countries, second only to South Korea.
“The Israeli consumer pays more than their counterparts in Western countries,” says Smotrich. “The main reason for this lies in the fact that entire sectors are held by monopolies and tycoons who exploit the closed economy to charge the Israeli consumer a high and unjustified price. I have decided to increase competition in this sector and thereby reduce the cost of living for households in Israel.”
The Times of Israel Community.