GAZA CITY, Gaza Strip — Amid ongoing economic deterioration in the Gaza Strip, the Hamas government has imposed new taxes on the population. In addition to siege and division, the government and its employees are struggling to weather the financial crisis and increased isolation resulting from the destruction of the smuggling tunnels.
On Dec. 1, the Finance Ministry instituted new import taxes on some goods, including fruits, vegetables and livestock entering Gaza through the Karam Abu Salem commercial crossing in addition to new taxes on shops, restaurants and bakeries. Several merchants and shop owners confirmed to Al-Monitor that the Finance Ministry had imposed an import taxes equivalent to a $30 tariff on each ton of fruit, $50 on each calf and $15 on each sheep. The new taxes have angered business owners, leading some to close their shops in protest during certain hours. Other merchants have threatened to halt imports of fruit and livestock until the government revokes what they see as unfair burdens.
“Taxes in Gaza increased by 600% from 2015 to 2016,” a Hamas official told Al-Monitor on condition of anonymity. “Before that, the government used to collect 10 million shekels [$2.5 million] every month in 2014. During 2015-2016, the amount spiked to 60 million shekels [$15 million] to meet the payrolls of public employees, with a 40% income tax.”
Atef Adwan, head of the Gaza-based Economic Committee of the Palestinian Legislative Council, told Al-Monitor, “The new taxes are intended to cover government expenditures, which is normal. The financial crisis facing the government in Gaza and the lack of funds forced it to rely on those who owe taxes to the government. ... People these days are confusing the taxes they pay with the bills they owe in return for the services provided.”
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