Smotrich signs order raising VAT exemption on overseas orders from $75 to $150

Finance Minister Bezalel Smotrich signs an order expanding the value added tax exemption on personal imports from $75 to $150, arguing that it is necessary to allow cheaper imports in order to encourage competition and lower prices.

In a statement, Smotrich says that the move is part of “a broad and significant series of steps” aimed at lowering the cost of living, alongside efforts to shake up the banking and dairy sectors.

All of these steps are predicated on the proposition that “it can be cheap here,” he says, arguing that “the Israeli economy is often dominated by a small number of strong monopolies,” giving consumers only the illusion of choice while things are really controlled by “a handful of controlling owners who allow themselves to exploit the citizens of Israel.”

“There is no reason why an international chain’s garment should be sold here for” significantly more than abroad, he argues. “There is no justification for a shoe that is sold in the United States for half the price – to be sold here for double the price.”

The finance minister asserted that the change will “oblige the monopolies to enter into real and fair competition for your hearts and your pockets. To be better and cheaper and more service-oriented and more competitive.”

Smotrich says that he really wants consumers “to buy in Israel, but I do not want you to be a captive customer. I don’t want the monopolies to take advantage of the fact that you are a captive customer to charge you exorbitant prices and get rich at your expense.”