Government Approved Raising Personal Import Tax Exemption to $150

The Israeli government approved on Sunday Finance Minister Bezalel Smotrich's order to raise the personal import tax exemption threshold to $150, an initiative introduced two months ago. Ministers Nir Barkat and Avi Dichter voted against the VAT exemption increase, while MK Amichai Chikli abstained.

The government vote precedes a scheduled Knesset session today regarding a proposal by MK Eli Dallal (Likud) to cancel the order. Finance Committee Chairman MK Hanoch Milwidsky (Likud), who also opposes the move, stated on Thursday that "Smotrich is afraid of a plenum vote because he knows he lacks a majority." Reports indicate that Finance Minister Bezalel Smotrich appealed to Prime Minister Benjamin Netanyahu to pass the measure as a government decision to bypass the plenum.

Following the government's approval of the order, coalition discipline is expected to apply during today's vote. This significantly increases the likelihood that the proposal to cancel the order will fail.

Finance Minister Smotrich stated: "The government took another step today proving that living costs can be lower. The approval of the order I signed, which is already in effect, provides backing and strengthens the move. We can already see the impact: more purchases, increased competition, and lower prices. The goal is clear: to turn every citizen into an importer and expand competition in the economy. I thank Prime Minister Benjamin Netanyahu for the partnership. It can be cheap here, and we are proving it."

Finance Committee Chairman Milwidsky spoke out against the decision: "I call on my colleagues in the coalition not to support the destruction of small businesses in favor of Chinese platforms in tomorrow's plenum."

Shahar Turjeman, President of the Federation of Israeli Chambers of Commerce, also responded to the government's decision, saying: "Finance Minister Bezalel Smotrich is dragging the Israeli government into a disastrous decision that will fatally harm the commerce sector in Israel. Smotrich's order is opposed by Israel's leading economists, senior officials in the Ministry of Finance and the Ministry of Economy, the Governor of the Bank of Israel, and many others."

"Now he is trying to drag the Knesset into the same dangerous and irresponsible step, and we will not allow it to happen. We will not stand by while a move is promoted that could lead to the loss of approximately 30,000 jobs and the bankruptcy of more than 15,000 businesses across the country, effectively crushing the commerce sector in Israel. This is a direct blow to the livelihoods of many families, a fatal blow to small and medium-sized businesses, and to the stability of the entire economy. We are confident that Knesset members will show national responsibility in the vote and will not lend their hand to the destruction of the commerce sector in Israel."