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(Financial Times-UK) Tobias Buck - The Hamas government in Gaza is increasing taxes and introducing a string of levies to fight a mounting financial crisis. Most of the 25,000-30,000 Gazans employed by the local government received their wages for the past two months either late or only partially. "This is the first time since June 2007 [when Hamas took power] that there is any real indication there are issues of liquidity for the government," one Gaza-based Western official said. "I think Hamas has not been able to generate as much funding from outside, and there are rumors the group is not getting as much as it used to from Iran," said Mokhemra Abu Saada, a professor of political science at Gaza's al-Azhar University. Jamal Nassar, a Gaza-based Hamas legislator, blamed an international crackdown on money flows to Gaza: "The siege on the Palestinian government [in Gaza] has been tightened recently and because of this it has been unable to bring in funds from abroad." He said the Hamas government depended on "foreign aid" to cover 90% of expenditures, with only 10% covered by local taxes and levies. 2010-04-28 09:15:22Full Article
Gaza Taxes Rise as Hamas Battles Cash Crisis
(Financial Times-UK) Tobias Buck - The Hamas government in Gaza is increasing taxes and introducing a string of levies to fight a mounting financial crisis. Most of the 25,000-30,000 Gazans employed by the local government received their wages for the past two months either late or only partially. "This is the first time since June 2007 [when Hamas took power] that there is any real indication there are issues of liquidity for the government," one Gaza-based Western official said. "I think Hamas has not been able to generate as much funding from outside, and there are rumors the group is not getting as much as it used to from Iran," said Mokhemra Abu Saada, a professor of political science at Gaza's al-Azhar University. Jamal Nassar, a Gaza-based Hamas legislator, blamed an international crackdown on money flows to Gaza: "The siege on the Palestinian government [in Gaza] has been tightened recently and because of this it has been unable to bring in funds from abroad." He said the Hamas government depended on "foreign aid" to cover 90% of expenditures, with only 10% covered by local taxes and levies. 2010-04-28 09:15:22Full Article
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