São Paulo – A study conducted by the United Nations Conference on Trade and Development (Unctad) says that Palestine loses US$ 306 million per year, on average, with taxes collected by Israel that are not transferred to the Palestinian National Authority. The report “Palestinian Fiscal Revenue Leakage to Israel under the Protocol on Economic Relations” is conducted annually and was released this Wednesday (03) in Geneva, Switzerland.
According to the study, the tax revenue loss amounts to 3.6% of the Palestinian GDP (Gross Domestic Product) and 18% of the Palestinian National Authority’s tax collection. The report also states that if these taxes were not evaded to other sources, Palestine could have a greater economic expansion and generate 10 thousand jobs per year in the occupied territories of Gaza Strip and West Bank.
The goods bought by the Gaza Strip and West Bank from other countries have to go through Israel and, after being inspected, are passed over to the occupied territories. That’s what should happen to the taxes also. However, the study mentions a survey done by Israel’s Central Bank that shows that 39% of Palestinian import that goes through the country ends up being “accounted” as if produced by Israel. That way, the taxes over these products don’t make it through to Palestinian National Authority treasury.
The study suggests changes to the Paris Protocol, which determines the way the taxes are to be collected by Israel and transferred to Palestinians, and also indicates that this process needs to be adapted to a structure that corresponds to the reality of the Palestinian economy, which went through great transformations since 1994 when the agreement between the parts were signed. The study suggests for Palestinians to be granted access to all information related to imports.
* Translated by Sérgio Kakitani
