GAZA CITY, Gaza Strip — Gaza’s Hamas leaders imposed a series of new taxes on imported clothing and office supplies just before the new school year, sparking limited but rare protests in the impoverished coastal strip.
The militant group’s decision comes at a time when Gaza’s 2.3 million people are suffering not only from a 15-year-old Israeli-Egyptian blockade, but also from another price spike caused by supply chain problems. supply and the Russian invasion of Ukraine. .
“It’s a wrong and oppressive decision that destroys the national economy,” said Nahed al-Sawada, who imports clothes from China and Turkey.
A list from the Economy Ministry includes expected taxes on items like packaged nuts, with an import duty of 2,000 shekels (nearly $600) per ton. In the past, nuts were imported duty free. The rate on a ton of toilet paper has gone from $90 to $580. The taxes are expected to come into effect on August 1.
The list also includes a tax of about $3 on a pair of jeans and $230 on a ton of plastic folders used to store papers. Demand for these items increases before the school year.
Emad Abdelhadi, a representative of the Gaza Clothing Merchants Syndicate, said a new pair of jeans sell for between $3 and $10 and the new tax will place an unfair burden on struggling consumers.
In a territory suffering from endemic poverty and unemployment approaching 50%, he said many Gazans are already looking for second-hand clothes. The new taxes, he said, “will rob them of the ability to buy.”
Gaza’s economy has been hit hard by the Israeli-Egyptian blockade, imposed when Hamas took power in 2007. Israel says the blockade is necessary to prevent Hamas from arming itself, but critics say the restrictions , which include strict limits on exports, amount to collective punishment.
The Hamas government is not internationally recognized and Israel and its Western allies consider the group, which opposes Israel’s existence and has in the past staged deadly suicide bombings against Israelis, as a terrorist organization .
Israel and Hamas have fought four wars since taking control from Hamas, further straining the territory’s dilapidated infrastructure. Electricity is scarce, tap water undrinkable and the health system is in shambles.
With tens of thousands of officials to support, as well as heavy spending on its military wing, it’s no surprise that Hamas is looking for new sources of revenue. Still, the timing is debatable, coming at a time when the Russian invasion of Ukraine has driven up consumer prices around the world.
Hamas authorities say the new taxes are aimed at protecting local industries. But experts and businessmen dispute this argument, because essential raw materials are now taxed.
Mohammed Abu Jayyab, an economist, said the taxes have failed to protect local manufacturers as the government continues to tax raw materials and production lines.
A spokesman for the economy ministry did not respond to requests for comment.
Hamas does not release figures on its funding resources or budgets, but the latest measures are part of a series of taxes targeting a wide range of sectors, from street vendors selling hot drinks to restaurants, to the construction of houses and cars.
The government offers few services in return and most aid and relief projects are covered by the international community. The funds help Hamas run a powerful government and military wing.
Protests against Hamas are rare and often met with force. But earlier this month, about two dozen members of the clothing merchants’ union expressed their frustration in public. They stood inside the building housing their union in Gaza City and held new pairs of jeans, with the price tags still on them, aloft for about half an hour.
Two days later, merchants gathered outside the offices of Hamas lawmakers. Police blocked the media from filming and ordered the protest halted after allowing union representatives inside to speak to lawmakers. The demonstration ended peacefully.
“Legislators acknowledged that taxes were high and said they would look into the matter,” said Abdelhadi, the union representative.
But he said he did not expect a positive result. “With these decisions, they have issued a death sentence against the industry.”
ABC News