Al Mezan Center for Human Rights has issued a report on the social dimensions of taxation in Gaza Strip.
The report discusses the relevant financial policies of the Gaza and Ramallah governments in general, and particularly tax policies and their effects on the economic and social situation in the Gaza Strip.
  In addition, the report briefly covers the economic basics of tax theory, and explains the modern social role of taxation.
 It also reviews the tax policies followed by the Israeli occupation authorities prior to the establishment of the Palestinian Authority, which did not fulfill the obligations placed on Israel by the international humanitarian law.
The report also analyzes, where available, the annual budgets of the Gaza and Ramallah governments and adds some commentary.
  The report presents a series of recommendations, as follows.
  Both Palestinian governments:   1.
         Need to establish unified tax legislation for both the Gaza Strip and the West Bank.
2.
         Should work on reviewing the Paris Economic Protocol.
3.
         Should accelerate work on legislation of Palestinian laws for a value-added tax and customs duties and tax on spending.
4.
         Should ensure that applicable taxes in areas under the Palestinian Authority address the social and economic situation of the Palestinian people and meet the requirements of development.
5.
         Should work on creating a sound tax system that addresses the issue of goods entering Gaza via tunnels.
6.
         Need to activate the trade agreement of 1998 between the PLO and the Arab Republic of Egypt.
7.
         Should consider the imposition of tariffs and other tax protection of Palestinian producers.
8.
         Consider providing tax exemptions and credits to the agricultural and industrial sectors, which are the most vulnerable sectors to the blockade and Israeli attacks.
  The report is available in Arabic on Al Mezan’s website.
For a full copy please click here.
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