- Israel will double the VAT exemption on personal imports from $75 to $150, effective within days.
- The move is led by Finance Minister Bezalel Smotrich and does not require Knesset Finance Committee approval.
- Treasury officials and business groups strongly oppose the change, citing expected annual tax revenue losses of 1.25 billion shekels, totaling 2.25 billion shekels by 2026.
- Critics argue the policy will harm local retailers and manufacturers and increase the state budget deficit.
- The volume of personal imports is expected to rise further, adding to the 52.8 million packages imported in 2025.
Source: ynetnews.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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