Good News
Smotrich Doubles the Fun: Personal Imports Up to $150 Now Tax-Free
Shopaholics rejoice! Smotrich just doubled Israel’s tax-free import limit to $150, more goodies, fewer fees, and a little win against sky-high prices.
Finance Minister Bezalel Smotrich announced today (Wednesday) that Israel will raise the tax-free threshold on personal imports from $75 to $150. The change, set to take effect in 21 days, is part of the minister’s broader effort to tackle the high cost of living by boosting competition and reducing prices set by dominant companies and monopolies.
According to the Ministry of Finance, clothing and footwear prices in Israel are about 28% higher than the OECD average, with four major companies controlling roughly 40% of the market and effectively dictating price levels. The ministry notes that Israelis’ purchasing power remains low compared to European countries, largely due to elevated living costs.
“The Israeli consumer pays far more than consumers in Western countries,” Smotrich said. “Entire sectors are held by monopolies and tycoons who exploit a closed market to charge unjustifiably high prices. My decision aims to increase competition and lower the cost of living for Israeli households.”
The move is expected to intensify competition with major importers and retail chains while reducing online shopping costs for consumers.
Chamal contributed to this article.