Finance Minister Bezalel Smotrich signed an order today (Tuesday) that doubles the VAT exemption ceiling on packages purchased from abroad.
The exemption threshold has increased from $75 currently to $150.
The Finance Minister's move is intended to immediately lower the cost of living for the Israeli consumer, and increase competition in the local market, in the hope that this will also lead to a decrease in prices in stores in the country.
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""It can be cheap here," Smotrich said during the signing of the order, adding that the goal is to fight the large monopolies in the market and force them to compete fairly.
The decision sparked widespread outrage among Israeli retailers and merchants, who fear that doubling the exemption will encourage the public to shift their shopping to overseas sites at the expense of local businesses.
They claim that this is an "unequal" move that harms their livelihood and property. In response, the merchants' representatives plan to file a petition with the High Court of Justice in an attempt to stop the move.
