freepalestine
17th January 2012, 03:30
Gaza Tunnel Owners Strike to Protest High Taxes
http://english.al-akhbar.com/sites/default/files/imagecache/5cols/leading_images/Gaza_Tunnels_pic_1.jpg
A Palestinian smuggler moves a sheep through a tunnel from Egypt to the Gaza Strip under the border in Rafah, southern Gaza Strip. (Photo: AP - Khalil Hamra)
By: Qais Safadi
Published Thursday, January 12, 2012
Hamas government taxes on tunnel owners is the latest challenge faced by Gazans combating long-time Israeli policies of military and economic aggression.
Gaza – Since Israel imposed its blockade on the Gaza Strip in June 2007, the owners of covert tunnels under the Egyptian border and the workers who operate them have been forced to deal with intense Israeli bombardment and tightening Egyptian security. These measures are all aimed at snuffing out the bustling underground smuggling business.
But they are also subject to the strict security procedures and taxes imposed by the Hamas-run government in the name of “tightening security and preventing the smuggling of forbidden substances,” as government sources put it.
For the third day in a row, the owners of the underground tunnels – which run between Gaza and Egypt and form a network underneath the border near Rafah – went on strike to protest the increase in taxes imposed by the Hamas government.
Some of these owners and employees told Al-Akhbar that in a large number of the tunnels, workers have stopped receiving goods or supplies from Egypt since Tuesday, in an attempt to stop the government from raising taxes.
Owners of tunnels complain that huge taxes on items imported through the underground passageways from Egypt, imposed by the government’s border and crossing point commission, have caused an alarming dip in income over the past two years.
The owners complain that the commission imposes high taxes on building materials, the mainstay of their business at the moment, while also banning the import of other supplies, such as car and motorcycle parts, that are also in high demand in Gaza.
They explain that the Gaza government levies a tax of 10 shekels (US$2.50) for one ton of gravel, 20 shekels (US$5) for one ton of cement, and 50 (US$12.50) shekels for one ton of metal.
Tunnel owners and employees expect the strike to spread to all the tunnels on the border in the next two days if the Hamas government insists on imposing taxes. They claim that, in principle, they have no problem paying the government in Gaza taxes on imported supplies, on the condition that the taxes are reasonable and do not damage their business.
Activity in the underground tunnels has slowed considerably in the past two years, because Israel – under international pressure following the Freedom Flotilla massacre in May 2010 – relaxed some of the restrictions on products that can enter the strip.
Previously, the people of Gaza depended on these tunnels for most of the supplies that were denied to them as a result of the Israeli blockade. Today, the tunnels are primarily used to smuggle in building materials, cars, and fuel.
Observers point out that the Hamas government deals with these underground tunnels as official trading channels. Commissions are appointed to resolve conflicts between the tunnels’ owners and workers, and taxes are imposed on any products and supplies imported through them.
Furthermore, individuals who wish to cross through the tunnels – particularly those forbidden to enter Gaza through the official Rafah crossing – have to register their names with the border and crossing point commission at least one day before travel.
Gazans also complain of huge taxes imposed by the Hamas government on smuggled cars and fuel. Taxes were raised several times on smuggled Egyptian fuel in the past two years, and the government does not differentiate between smuggled and legally imported cars, collecting the same fees for both.
Car dealers and tunnel owners confirm that the government commission charges US$1,000 for each car smuggled through the tunnels, in addition to a minimum of US$6,000 (the number can increase dramatically considering the power of the car's engine and its model) in customs fees.
Many Gazans place part of the responsibility for rising car prices on the Hamas government, because of the high taxes it imposes on smuggled cars and the 25 percent duty the government has decided to charge on any cars imported through Israel.
The Gaza government implemented extra security procedures a few months ago and erected gates in the area leading to the tunnels, to better control what is being smuggled through them, and to prevent contraband from entering the strip.
A government source commented on these procedures, pointing out that they are put in place to stop attempts at smuggling forbidden substances and stolen cars, and to prevent any security breakdown both in the Gaza Strip itself and on the Egyptian side of the border.
He stressed that the government will not impose any new taxes on products coming through the tunnels, but that it is concerned with regulating this informal form of trade, which was imposed on the Palestinian enclave by an unjust Israeli blockade.
This article is an edited translation from the Arabic Edition.
http://english.al-akhbar.com/content/gaza-tunnel-owners-strike-protest-high-taxes
http://english.al-akhbar.com/sites/default/files/imagecache/5cols/leading_images/Gaza_Tunnels_pic_1.jpg
A Palestinian smuggler moves a sheep through a tunnel from Egypt to the Gaza Strip under the border in Rafah, southern Gaza Strip. (Photo: AP - Khalil Hamra)
By: Qais Safadi
Published Thursday, January 12, 2012
Hamas government taxes on tunnel owners is the latest challenge faced by Gazans combating long-time Israeli policies of military and economic aggression.
Gaza – Since Israel imposed its blockade on the Gaza Strip in June 2007, the owners of covert tunnels under the Egyptian border and the workers who operate them have been forced to deal with intense Israeli bombardment and tightening Egyptian security. These measures are all aimed at snuffing out the bustling underground smuggling business.
But they are also subject to the strict security procedures and taxes imposed by the Hamas-run government in the name of “tightening security and preventing the smuggling of forbidden substances,” as government sources put it.
For the third day in a row, the owners of the underground tunnels – which run between Gaza and Egypt and form a network underneath the border near Rafah – went on strike to protest the increase in taxes imposed by the Hamas government.
Some of these owners and employees told Al-Akhbar that in a large number of the tunnels, workers have stopped receiving goods or supplies from Egypt since Tuesday, in an attempt to stop the government from raising taxes.
Owners of tunnels complain that huge taxes on items imported through the underground passageways from Egypt, imposed by the government’s border and crossing point commission, have caused an alarming dip in income over the past two years.
The owners complain that the commission imposes high taxes on building materials, the mainstay of their business at the moment, while also banning the import of other supplies, such as car and motorcycle parts, that are also in high demand in Gaza.
They explain that the Gaza government levies a tax of 10 shekels (US$2.50) for one ton of gravel, 20 shekels (US$5) for one ton of cement, and 50 (US$12.50) shekels for one ton of metal.
Tunnel owners and employees expect the strike to spread to all the tunnels on the border in the next two days if the Hamas government insists on imposing taxes. They claim that, in principle, they have no problem paying the government in Gaza taxes on imported supplies, on the condition that the taxes are reasonable and do not damage their business.
Activity in the underground tunnels has slowed considerably in the past two years, because Israel – under international pressure following the Freedom Flotilla massacre in May 2010 – relaxed some of the restrictions on products that can enter the strip.
Previously, the people of Gaza depended on these tunnels for most of the supplies that were denied to them as a result of the Israeli blockade. Today, the tunnels are primarily used to smuggle in building materials, cars, and fuel.
Observers point out that the Hamas government deals with these underground tunnels as official trading channels. Commissions are appointed to resolve conflicts between the tunnels’ owners and workers, and taxes are imposed on any products and supplies imported through them.
Furthermore, individuals who wish to cross through the tunnels – particularly those forbidden to enter Gaza through the official Rafah crossing – have to register their names with the border and crossing point commission at least one day before travel.
Gazans also complain of huge taxes imposed by the Hamas government on smuggled cars and fuel. Taxes were raised several times on smuggled Egyptian fuel in the past two years, and the government does not differentiate between smuggled and legally imported cars, collecting the same fees for both.
Car dealers and tunnel owners confirm that the government commission charges US$1,000 for each car smuggled through the tunnels, in addition to a minimum of US$6,000 (the number can increase dramatically considering the power of the car's engine and its model) in customs fees.
Many Gazans place part of the responsibility for rising car prices on the Hamas government, because of the high taxes it imposes on smuggled cars and the 25 percent duty the government has decided to charge on any cars imported through Israel.
The Gaza government implemented extra security procedures a few months ago and erected gates in the area leading to the tunnels, to better control what is being smuggled through them, and to prevent contraband from entering the strip.
A government source commented on these procedures, pointing out that they are put in place to stop attempts at smuggling forbidden substances and stolen cars, and to prevent any security breakdown both in the Gaza Strip itself and on the Egyptian side of the border.
He stressed that the government will not impose any new taxes on products coming through the tunnels, but that it is concerned with regulating this informal form of trade, which was imposed on the Palestinian enclave by an unjust Israeli blockade.
This article is an edited translation from the Arabic Edition.
http://english.al-akhbar.com/content/gaza-tunnel-owners-strike-protest-high-taxes