Israel to Double VAT Exemption Limit on Personal Imports

Jerusalem, 27 November, 2025 (TPS-IL) — Israel’s Finance Minister Bezalel Smotrich expanded the exemption from VAT on personal imports to a value of up to $150, up from the current limit of $75. The Minister said he took this step as part of the fight against the cost of living, the minister has decided to dramatically expand.

“The Israeli consumer cannot be held captive by tycoons who control the economy,” said Smotrich.

According to estimates, four large companies in the clothing and footwear sector in Israel together hold approximately 40% of the market share in this sector and in effect set a price ceiling. High and unjustified for all households.

According to data from the Ministry of Finance, the purchasing power of Israeli citizens is lower than that of most European countries, with Israel ranked 22nd out of 38 countries. The reason for this is an expensive price level that reduces the purchasing power of citizens in Israel.