Israeli government approves raising import tax exemption minimum to $150

The Israeli government on Sunday approved a decision by Finance Minister Bezalel Smotrich to double the tax exemption ceiling on personal imports to $150. The Knesset is expected to vote on the order on Monday, and the Finance Ministry said it anticipates the measure will pass.

Following the government’s approval, Smotrich said the move demonstrates that consumer prices can be reduced. “The government took another step today that proves it can be cheap here. The approval of the order I signed, which has already come into effect, gives it backing and strengthens the move,” he said. “Even now, we can see the impact: more purchases, more competition, and lower prices. The goal is clear: to turn every citizen into an importer and expand competition in the market.” He thanked Prime Minister Benjamin Netanyahu for his support, adding, “It can be cheap here, and we are proving it.”

The upcoming Knesset vote is expected to test coalition unity, as some lawmakers within the coalition have voiced opposition to the order. A decisive discussion is scheduled regarding efforts to cancel the measure. The Finance Minister’s office said the government’s approval makes its position clear ahead of the vote and signals an expectation of coalition discipline.

Finance Committee Chairman MK Hanoch Milwidsky criticized the move on social media platform X, calling on coalition members not to support it. “I call on my colleagues in the coalition not to support tomorrow in the plenum the destruction of small businesses in favor of platforms from China,” he wrote.

Last week, Milwidsky also accused Smotrich of avoiding a vote due to a lack of majority support. “Smotrich is afraid of a vote in the plenum because he knows he doesn't have a majority. This is a bad decision that the vast majority of Knesset members oppose. I very much hope that the Likud ministers will finally stand up for Likud's values and clarify to the Minister of Finance that both our opinion and our voters must be taken into account,” he wrote.