Overview
- The draft order would raise the VAT exemption on personal imports, largely online purchases, from $75 to $150.
- The Finance Ministry released the text for public comment, with any implementation possible no sooner than 21 days after publication.
- The Israel Tax Authority estimates the change could reduce annual VAT revenue by up to NIS 1 billion, with no offset yet identified.
- Officials present the step as a cost‑of‑living measure designed to inject competition into markets dominated by a few large firms.
- Government materials cite OECD data showing Israel among the most expensive developed countries and note sectors like clothing and footwear where four firms hold about 40% of the market.