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Israel Raises VAT Exemption Amid Price Protests

12/23/2025

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Story summary
  • On December 23, 2025, Israeli Finance Minister Bezalel Smotrich signed an order raising the personal imports VAT exemption from $75 to $150.
  • Smotrich argued the change would foster competition and lower prices amid a monopolistic economy.
  • Business groups criticized the move as protesters gathered outside the Finance Ministry.
  • The OECD reported Israel's food and beverage prices are 52% higher than the developed-country average.