Coalition votes down Smotrich's order to double import tax rate

Finance Minister Bezalel Smotrich’s order to double the VAT exemption ceiling on personal imports to $150 was struck down in the Knesset plenum after it failed to secure the support of numerous coalition lawmakers.

- By KESHET NEEV

The order was rejected by a wide margin Monday night, with 59 MKs against and 25 in favor. Within the coalition, a group of lawmakers from Prime Minister Benjamin Netanyahu’s Likud Party joined forces to oppose the measure.

Netanyahu did not arrive at the plenum to vote.

The finance minister’s order was said to be aimed at lowering the cost of living in the country and reducing prices for online purchases. Critics said it would significantly harm local businesses. The government had approved Smotrich’s order on Sunday; however, it still had to be finalized through the vote in the plenum, which was delayed into the late night amid negotiations aimed at securing a majority.

Smotrich vowed to the plenum, ahead of the vote, that he would continue to push for the measure’s passage if it was struck down.

“If this order falls, I will sign a new order because I am determined to reduce the cost of living,” he said.