Hamas imposes new taxes to meet payroll dues
In an attempt to raise the payrolls of employees appointed by the previous Hamas government, new taxes have been levied on goods and services in Gaza, angering importers and consumers.
GAZA CITY, Gaza Strip — The Hamas authorities in Gaza have imposed additional taxes on imported goods, services and public shareholding companies for the purpose of meeting the payrolls of employees appointed by the previous Hamas government, leading to a wave of widespread criticism among the populace.
Members of Hamas’ Legislative Council approved the new levies by adopting a “national solidarity” tax that went into effect at the start of April and extends until the end of the year.
The law, of which Al-Monitor obtained a leaked copy signed by the president of the Palestinian Authority (PA), imposed a tax not exceeding 10% on the value of goods and merchandise imported into the Gaza Strip, as well as on services and public shareholding companies with profits not exceeding $1 million per year. A 100% tax was levied on tobacco and its derivatives. Hamas’ Change and Reform Bloc in the Legislative Council justified the law as necessary to “overcome the siege and address the problems of citizens.”
The bloc issued a statement indicating that a comprehensive law was passed to overcome the current impasse created by the reconciliation government and the siege, for which the provincial authority in Ramallah bears some responsibility. The statement read: “The plan was symbiotic and temporary, adopted to serve the needs of all citizens, particularly the poor, the unemployed, workers and employees, as well as to boost economic activity in the Strip. Citizens will appreciate its importance and its aim to better their interests, overcome the siege, satisfy the needs of the poor and subsidize the thousands of people who are poor and unemployed.”
