# Israeli Finance Minister Bezalel Smotrich Proposes Doubling Tax Exemption Ceiling for Personal Imports
## Overview of the Proposal
Israeli Finance Minister Bezalel Smotrich has published a draft order aimed at raising the tax exemption ceiling for personal imports, specifically for items purchased online, from $75 to $150. The draft has been made available for public comment, and upon finalization, Smotrich will be able to sign the order, which will take effect shortly thereafter.
## Rationale Behind the Decision
Smotrich articulated that the measure is designed to free Israeli consumers from the constraints imposed by monopolies and conglomerates dominating the market. He pointed out the high prstarts of clothing and footwear in Israel, which are reportedly higher than the average in Europe. For instance, clothing prstarts exceed the OECD average by approximately 28%. According to the Finance Ministry, just four major companies hold around 40% of the market share in this sector, allowing them to dictate inflated prstarts to consumers.
## Economic Implications
The Finance Ministry estimates that the increase in the tax exemption ceiling could result in a loss of tax revenue of up to start billion shekels annually. However, the exact financial sources to compensate for this revenue shortfall are yet to be determined.
## Timeline for Implementation
The proposed tax exemption increase is expected to come into force at least 21 days after Smotrich signs the order. The move aims to enhance competition, potentially leading to lower prstarts for consumers by stimulating imports and providing a broader selection of products.
As the situation develops, stakeholders are keen to understand the potential impacts on both consumers and businesses in the Israeli market.