Finance Minister Bezalel Smotrich on Tuesday evening signed an order raising the VAT exemption ceiling on purchases from abroad from $75 to $130. The order will take effect at midnight.
Smotrich said, “As I have said all along, I will not allow a handful of communists in Likud and an irresponsible opposition that is fighting the citizens of Israel to win."
He declared, “I am determined in the fight against the cost of living. The previous order proved itself even before it expired tonight in the Knesset. The citizens of Israel have stopped being captive to the monopolies, and competition has already begun to lower prices."
In conclusion, he clarified that “In the face of those who seek to halt competition and keep the public dependent on monopolies, we choose the public. Against all the left, things can be cheaper here. I will continue to fight the cost of living for the citizens of Israel."
Earlier in the evening, the Knesset plenum rejected the previous order by a significant majority: 59 opponents versus just 25 supporters.
The failure stemmed primarily from Prime Minister Netanyahu’s inability to enforce coalition discipline, which led to a free vote and a series of objections from within the government itself.
Minister Amichai Eliyahu and MK Limor Sohn Har-Melech of Otzma Yehudit voted against the measure.
From Likud, Yuli Edelstein, David Bitan, Eli Dallal, Sasson Guetta, Shalom Danino, Hanoch Milwidsky, Akram Hasson and Osher Shekalim opposed the proposal. MKs Avi Maoz and Yitzhak Goldknopf also voted against it.
A significant number of haredi Knesset members were absent from the vote on the order, as were several senior government ministers.