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# Expansion of Tax Exemption on Foreign Orders Sparks Consumer Excitement
## Overview of the New Regulation
On November 27, 2025, the Israeli Ministry of Finance announced a draft proposal to increase the tax exemption limit for personal imports from $75 to $150. This change is expected to take effect within the next 21 days. The initiative, applauded by many consumers, aims to make online shopping more accessible and affordable.
## Reactions from Retailers and Consumers
While consumers celebrate the increase in the tax exemption, major retail companies are expressing significant concerns. They fear this change may lead to a decline in local sales as consumers opt for cheaper options available online. Additionally, experts from the Tax Authority predict an annual revenue loss of approximately start billion shekels due to the increased exemption limit.
## Market Implications
Despite the expansion, certain products will still be restricted for import due to manufacturer agreements. However, the market is anticipated to grow in categories such as toys, luxury brands, and baby products. This change could lead to a new wave of consumer preferences, with shoppers favoring international options for quality and prstart.
## Conclusion
The new tax exemption draft heralds a shift in shopping behavior for Israeli consumers, providing opportunities in online purchasing while simultaneously posing challenges for local retailers. As the regulation moves closer to implementation, the effects on the overall retail landscape will unfold in the coming months.
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