Israel’s Finance Minister, Betzalel Smotrich (Likud) made an executive order to raise the value taxation threshold from $75 to $150 for private individual consumers, as a measure to provide some relief to high consumer costs. It was effective around Dec 25, 2025.
Early this morning, 24 Feb 2026, the Knesset – led by Netanyahu and the rest of the Likud party – voted to strike down the sales tax relief to consumers,
Smotrich vows to try again.
In Israeli shops, when they import goods they pay 18% tax and then pass that on to their customers.
For many years consumers could receive up to $75 USD in goods value per order from overseas as a relief to high costs. Smotrich tried to raise that threshold to $150 in value (does not include shipping costs).
The shopkeepers protested against the raise. But like I said at the start – they can always gain back their customers by providing friendly face to face excellent service, without shipping charge.
Some Details on the vote:
We will just have to wait and see how this goes.
The Knesset revoked the measure that increased the VAT exemption on personal imports from $75 to $150, reverting it back to the previous limit of $75.
This decision was made by a vote of 59 to 25 on Tuesday, February 24, 2026, and the change is effective immediately upon the vote, meaning the $75 exemption limit is now back in force.
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Sources: https://www.timesofisrael.com/knesset-revokes-measure-that-made-more-online-purchases-tax-exempt/