Finance Minister Bezalel Smotrich signed a decree increasing the value added tax (VAT) exemption for online purchases made by Israelis in foreign stores from $75 to $150.
This change will come into effect as part of the 2026 budget. Let us note that this step is completely opposite to the recommendations of the Ministry of Finance officials who are trying to achieve the abolition of this tax benefit, and is guaranteed to cause discontent among Israeli industrialists and importers.
However, Bezalel Smotrich apparently hopes for the gratitude of the Israelis, which could give him additional votes in the upcoming parliamentary elections.
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