During an episode of the “Current Issues” program produced by Horizon Center

During an episode of the “Current Issues” program produced by Horizon Center with support from Konrad Adenauer Stiftung, Economic experts stressed that the Palestinian market is suffering from “economic chaos”. The experts also stressed that the taxation system in needs to be restructured and various segments of the Palestinian society need to adopt new financial and fiscal policies.

Professor of economics at Birzeit and Arab American Universities, Dr. Nasr Abdel Karim said that the tax system needs to be restructured and reformed, while noting that some of these measures require societal debate and democratic practices in order to ensure the participation of all segments of society in approving new economic and financial policies”.

Abdul Karim also said that the impact of high prices in the Palestinian markets is due to two main factors, the first is the erosion of the productive base of the national economy in recent years. He explained that “This erosion has led to complete dependence on importing the majority of products from the world market and Israeli settlements”. He added that the second factor is created by the PA’s lack of control over the crossings and borders. He also noted that the PA’s economic agreements has connected the Palestinian customs envelope with that of the occupying power despite the huge disparities between the two economies. Abdul Karim also explained that the tax system is considered exorbitant and incompatible with the living conditions of Palestinian residents, compared to the high per capita income in the occupying country. He stressed the need to impose a new tax system that works to break the rules and agreements, and to hold awareness raising initiatives of the Palestinian citizenry to eliminate tax evasion.

For his part, economic journalist Ibrahim Abu Kamesh described the wave of high prices as economic chaos, adding that the government should be able to control this chaos through its ministries concerned to safeguard the interest of the average citizens.

Abu Kamesh explained that the government took unilateral and “uncalculated” measures, after deducting 20% of employees’ salaries in light of the unprecedented wave of high prices that citizens are going through.