In June 2016 the BBC Gaza bureau’s Rushdi Abualouf produced an article for the BBC News website titled “Gazans squeezed by triple taxes as Hamas replaces lost income“.
As was noted here at the time, Abualouf’s portrayal of Hamas’ “financial crisis” skimmed over the fact that the terror organisation’s prioritisation of rearmament and tunnel building plays a key role in the creation of economic and social pressures on ordinary residents of the Gaza Strip. The BBC’s correspondent preferred to focus audience attentions elsewhere:
“It [Hamas] has also faced a crippling blockade by Israel and Egypt and financial sanctions from other countries since it won Palestinian elections in 2006.”
“And Hamas’s financial crisis is unlikely to be solved soon with Israel and Egypt continuing their border closures amid fear of attack by militants from Gaza.”
In early February of this year the BBC’s Tim Franks visited the Gaza Strip. Citing “stifling border closures […] the people here say are for collective punishment”, Franks likewise painted a monochrome picture of dire poverty and deprivation for his World Service listeners which did not include any serious reporting on the subject of the Hamas policies which exacerbate the difficult conditions for residents of the Gaza Strip.
In the nine months since Abualouf’s article was published the BBC has not revisited the topic of Hamas’ draconian taxation policies. COGAT recently published an article which includes more up to date information.
“In April 2015 Hamas promoted a new economic plan which was characterized by the imposition of a new tax called “The Solidarity Tax”. Hamas had claimed that this new tax will help the poor of the Gaza Strip, however, in practice, most of the profits from the taxes have been transferred directly to the salaries of Hamas workers. At the same time, Hamas has been imposing new taxes on the Strip’s residents, both directly and indirectly, in addition to improving and expanding old taxes as well.
The most recent burden that Hamas has imposed on the residents of Gaza, with the aim of gaining more money delivered to its own pocket, is forcing merchants to pay off their taxes and debts before being allowed to leave the Strip. In February of 2017, Hamas released a new directive regarding the exit of businessmen and merchants from the Gaza Strip through Erez and Rafah crossings. The new directive stated that it was incumbent upon these businessmen and merchants to provide official documentation stating that they had settled their payments and debts with relevant government and local authorities before leaving the Strip. In addition, Hamas recently attempted to impose new taxes on construction materials, but the move was thwarted after rising resentment by Gaza’s importers and Israel’s threat to completely halt the import of construction goods to the Gaza Strip.
These days, Hamas is in the midst of an economic plan to increase their profits from taxes with the sole intent of using the profits for salary payments. In 2016, Hamas’ average monthly earning from taxation stood at 60 Million NIS, yet in February 2017, the profits from taxes already stood at about 100 million NIS, with the vast majority of these monies going to Hamas’ pocket rather than taking care of Gaza’s people in need.”
While the BBC is clearly aware of the effects of Hamas’ policy of augmented taxation on local residents and the terror group’s priority of military rehabilitation over social and economic issues, those topics continue to be under-reported even in direct coverage from the Gaza Strip.