Minister of Finance Yair Lapid signed an order granting a total import tax exemption on personally imported products, priced up to US$500. The previous tax exemption ceiling was US$325.
The increased exemption on import duties applies to items imported by mail or air. In his announcement of the order, Lapid noted: "In the campaign against the cost of living, we're also looking at the future, and we are therefore bearing good news for consumers shopping on the Internet: approval of an increase in the complete tax exemption for products imported through the web. This is another step in our effort to lower the cost of living by cutting prices, overcoming barriers, and encouraging competition."
The change is effective as soon as it is published in official gazette. According to the order, the import tax exemption will apply if the following three conditions are fulfilled: the goods are imported by mail delivery or air delivery, the goods are designed for the person's own use, and the amount of the transaction does not exceed US$500.
The exemption does not apply to tobacco and alcohol products or intoxicating beverages. VAT rate (18%) isn't being changed, and will continue to be levied on to personal purchases above US$75. The new change will apply to the most common internet orders of clothes (normally having a 6% duty rate), shoes (12%), and cosmetics and toiletries (12%).
