For public information, Finance Minister Bezalel Smotrich published a draft decree doubling the cost of tax-free parcels from abroad, The Marker reports.
Currently, Israelis are exempt from paying tax on goods ordered from abroad that cost less than $75. Orders over this amount are subject to VAT.
If the corresponding decree is signed, Israelis will be able to order goods worth up to $150 from abroad. This will significantly increase the range of goods purchased abroad, and will also allow you to place larger orders, saving on commissions and shipping. This, according to Smotrich, stimulates competition and will lead to lower prices for goods sold in Israel.
Experts from the Ministry of Finance are against raising the VAT exemption bar. A source in the ministry, commenting on Smotrich’s decision, noted that it is extremely unreasonable to refuse additional tax revenues at a time when the economy has not yet recovered from the consequences of the war.
This step also raises concerns among Israeli entrepreneurs and small businesses, which will find it difficult to compete with prices on foreign Internet sites.