Fearing aid slash, PA to collect more customs duties
The Palestinian Ministry of Finance is increasing customs duties on a range of goods, allegedly to protect local production, in light of a budget deficit of $1.07 billion in 2017 and threats of a drop in international aid to the PA.
GAZA CITY, Gaza Strip — Palestinian President Mahmoud Abbas issued a decree Jan. 3 canceling tax exemptions in the Gaza Strip. The decree abolished Decree No. 18 of 2007, which exempted all citizens in the southern governorates from paying taxes and customs fees.
Louay Hanash, the director general of the Customs, Excise Duties and VAT division at the Finance Ministry, told Al-Monitor, “The Ministry of Finance sent to the Israel Customs Administration a list of goods indicating the new increased customs duties to be imposed as of Jan. 14 in the West Bank and the Gaza Strip.”
The list indicated that customs duties will be increased on clothing items from 6% to 15%, on furniture from 12% to 20%, on footwear from 12% to 27% and on aluminum products from 8% to 16%.
Hanash said, “Under Annex IV of the Paris Protocol signed between the Palestinian Authority [PA] and Israel on April 29, 1994, the Palestinian Ministry of Finance may request the Israel Customs Administration to increase customs duties on imported goods and can collect the proceeds of this hike as part of customs clearance revenues.”
