Minister of Finance Yair Lapid yesterday signed an order granting a total import tax exemption on personally imported products priced up to $500. The previous ceiling was $325.
In his announcement of the order, Lapid said, "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."
This measure is designed to benefit individual consumers making personal imports and to reduce the cost of living in Israel, while leveraging the advantages of the Internet in order to overcome barriers and encourage competition.
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 $500.
The exemption does not apply to tobacco and alcohol products or intoxicating beverages.
Frequently imported items that will benefit from the exemption include clothing and textiles, on which 6% customs duty is currently charged; footwear (12% customs duty); and cosmetics and toiletries (12%).
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2014
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