In a move aimed at combating the rising cost of living, Finance Minister Bezalel Smotrich has decided to “dramatically” expand the value added tax exemption on personal imports from $75 to $150, the Finance Ministry announced Wednesday.

In a statement, the ministry said that Smotrich aims to “ease the cost of living” and “remove from monopolies and companies that control the economy the ability to charge Israeli consumers higher prices than in most European countries.”

VAT, a type of consumption tax, is set in Israel at 18 percent.

Market concentration has led to “a high and unjustified price level for all households,” while “the purchasing power of Israeli citizens is lower than that of most European countries, with Israel ranked 22nd out of 38 countries,” the treasury added.

Along with its statement, the Finance Ministry published a copy of Smotrich’s order for a 21-day public comment period before it is signed and implemented.

The Federation of Israeli Chambers of Commerce business umbrella group and the Manufacturers Association of Israel both oppose raising the tax exemption level........

© The Times of Israel