Taxation in the Palestinian territories
Encyclopedia
Taxation in the Palestinian territories
is a complex system which may involve payment to the Palestinian Authority (PA) and/or Israel
in the context of the Israeli–Palestinian conflict
. In 2005 the Palestinian Authority collected approximately $34 million per month from taxes and other charges, and Israel collected about $75 million per month in tariff
s on foreign imports and value added tax
es (VAT) on Israeli goods and services and on average kept about $15 million while forwarding the other $60 million to the PA. Since the 2006 Palestinian legislative election
, Israel has regularly withheld the taxes it owes the Hamas
-led Palestinian Authority.
and primarily defined by the Oslo II Accords of 24 and 28 September 1995. Oslo II incorporated and superseded:
Since the 2006 Palestinian legislative election
, Israel has withheld some of the taxes it owes the Hamas
-led Palestinian Authority. In June 2008, Israel withheld part of the taxes it owes the Palestinian Authority in an apparent retaliation for Prime Minister of the Palestinian National Authority
Salam Fayyad
attempting to undermine Israel – European Union relations.
Palestinian territories
The Palestinian territories comprise the West Bank and the Gaza Strip. Since the Palestinian Declaration of Independence in 1988, the region is today recognized by three-quarters of the world's countries as the State of Palestine or simply Palestine, although this status is not recognized by the...
is a complex system which may involve payment to the Palestinian Authority (PA) and/or Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
in the context of the Israeli–Palestinian conflict
Israeli–Palestinian conflict
The Israeli–Palestinian conflict is the ongoing conflict between Israelis and Palestinians. The conflict is wide-ranging, and the term is also used in reference to the earlier phases of the same conflict, between Jewish and Zionist yishuv and the Arab population living in Palestine under Ottoman or...
. In 2005 the Palestinian Authority collected approximately $34 million per month from taxes and other charges, and Israel collected about $75 million per month in tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s on foreign imports and value added tax
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
es (VAT) on Israeli goods and services and on average kept about $15 million while forwarding the other $60 million to the PA. Since the 2006 Palestinian legislative election
Palestinian legislative election, 2006
On January 25, 2006, elections were held for the Palestinian Legislative Council , the legislature of the Palestinian National Authority . Notwithstanding the 2005 municipal elections and the January 9, 2005 presidential election, this was the first election to the PLC since 1996; subsequent...
, Israel has regularly withheld the taxes it owes the Hamas
Hamas
Hamas is the Palestinian Sunni Islamic or Islamist political party that governs the Gaza Strip. Hamas also has a military wing, the Izz ad-Din al-Qassam Brigades...
-led Palestinian Authority.
History
The situation in the territories where alluded to in the Oslo AccordsOslo Accords
The Oslo Accords, officially called the Declaration of Principles on Interim Self-Government Arrangements or Declaration of Principles , was an attempt to resolve the ongoing Palestinian-Israeli conflict...
and primarily defined by the Oslo II Accords of 24 and 28 September 1995. Oslo II incorporated and superseded:
- the Gaza–Jericho Agreement of 29 April 1994, including the Protocol on Economic RelationsProtocol on Economic RelationsThe Protocol on Economic Relations was an annex of the Gaza–Jericho Agreement between Israel and the Palestinian Authority signed in Paris on 4 May 1994. It governed economic relations between the two parties...
- the Agreement on Preparatory Transfer of Powers and Responsibilities Between Israel and the PLO of 29 August 1994, also known as the Early Empowerment Agreement
- the Protocol on Further Transfer of Powers and Responsibilities of 27 August 1995 also known as the Further Transfer Protocol
Since the 2006 Palestinian legislative election
Palestinian legislative election, 2006
On January 25, 2006, elections were held for the Palestinian Legislative Council , the legislature of the Palestinian National Authority . Notwithstanding the 2005 municipal elections and the January 9, 2005 presidential election, this was the first election to the PLC since 1996; subsequent...
, Israel has withheld some of the taxes it owes the Hamas
Hamas
Hamas is the Palestinian Sunni Islamic or Islamist political party that governs the Gaza Strip. Hamas also has a military wing, the Izz ad-Din al-Qassam Brigades...
-led Palestinian Authority. In June 2008, Israel withheld part of the taxes it owes the Palestinian Authority in an apparent retaliation for Prime Minister of the Palestinian National Authority
Prime Minister of the Palestinian National Authority
The Prime Minister of the Palestinian National Authority is the head of government of the Palestinian Authority government.The Prime Minister's Office was created in 2003 to manage day-to-day activities of the Palestinian government. The position was created because both Israel and the United...
Salam Fayyad
Salam Fayyad
Salam Fayyad is a Palestinian politician and Prime Minister of the Palestinian National Authority of the Palestinian National Authority. His first appointment, on 15 June 2007, which was justified by President Mahmoud Abbas on the basis of "national emergency", has not been confirmed by the...
attempting to undermine Israel – European Union relations.