Buying online is about to get cheaper in Israel..
According to Globes, Finance Minister Yair Lapid yesterday signed an order exempting personal imports from customs taxes for purchases up to a maximum of $500 (up from the previous exemption of up to $325).
VAT isn't being changed, and will continue to be tacked on to purchases above $75.
Lapid says this is another step in lowering the cost of living.
The exemption from customs will be applied as long as 3 conditions are met:
1. the import is done via mail messenger or airmail.
2. the product is meant for personal use (and not for re-sale)
3. the price of the product is not greater than $500
The exemption will not apply to tobacco or alcohol products. It will apply to the most common internet orders of clothes (normally having a 6% customs rate), shoes (12%), and cosmetics and toiletries (12%).
I expect that this will cause an increase of Internet purchases of small electronics - digital cameras, computer accessories, etc.
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