Taxes vary in Palestine, as of 2016, these taxes are subject to the Oslo agreements, in particular, the Economic Relations Protocol or the Paris Protocol, which was signed in 1994 by the Palestine Liberation Organization and the occupation

In this article, we will get to know the most important and most prominent taxes imposed in the local markets in Palestine, and how much the government got in recent years.

Income Tax

From the local financial sources of the government, and its value in 2019 amounted to 940 million shekels, which is obligatory for the natural non-Palestinian who resided in Palestine during the year in which the income was achieved for a period of not less than 185 days, whether his stay was intermittent or related, as it is applied to People, companies, and institutions.

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Value Added Tax

It is imposed on the difference between the cost price of the commodity and the selling price, and the percentage of added value-added locally is 16%, and this type of tax is generated by the Palestinian Authority, which is equivalent to 845 million dollars annually, with a rate of approximately 31% of the total taxes, customs, and excises collected by the authority, The frequent rise in value-added tax, which automatically means that commodity and luxury prices rise, will be offset by lower purchasing power, and it is the ordinary citizen who will bear the burden of that rise.


It is imposed on local and imported cigarettes sold in the Palestinian local markets, with a total value of 220 million shekels, and expectations in the coming years indicate a rise of 50 million shekels.

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Drinks and alcohol sold in the local market and their total value in 2019 reached about 4.3 million shekels and the possibility of increasing it in the coming years to 6 million shekels.

Property Tax

Immovable property such as buildings, real estate, land, and other properties, and the value of its collection in recent years amounted to about 15 million shekels and the possibility of an increase in the coming years to 18 million shekels.

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Goods Imported to the Palestinian Market

It is collected by the Israeli Ministry of Finance, and this tax is transferred directly to the Palestinian treasury every month, this revenue consists of customs, VAT, purchase tax, and tax Hydrocarbons, income tax and others, and the total value of revenue amounted to 7950 million shekels in 2019, and the possibility of an increase in the coming years. The clearing revenue is the backbone of the financial revenues of the financial government, and without this tax, the sector employees will not be able the year of their monthly wages and the Palestinian Authority is basically dependent on them.

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