Coupled with the above, was the Israeli occupation’s deduction of Palestinian tax revenues money
due for the State of Palestine, as a bargain chip to pressure the later to stop payments of living
maintenance money paid to families of prisoners, injured and martyrs, a deduction that violates
their rights. The deductions constituted (7%) of the Palestinian annual tax clearance revenues.
2. National economy: The Palestinian economy suffered from the continuous Israeli
policies and procedures and faced a set of challenges that had continuous
repercussions on the Palestinian economy, including:15
- Control of its economic resources located in areas classified "C", which are under full
Israeli control, completion of the construction of the annexation and expansion wall and
confiscation of land for settlement expansion. It also suffered from the continued
separation of the Palestinian governorates from each other and from the dependence of
the Palestinian economy on the Israeli economy. The occupation authorities also
continued control of (62%) of the area of the West Bank that is richest in economic
resources, in addition to their control over (85%) of water sources, as well as control of
crossings and borders.
- Closing and destroying economic establishments and the occupation's attacks on the
economic infrastructure, as it continued the policy of demolishing and closing economic
establishments, closing and destroying dozens of them in the West Bank, in addition to
confiscating some equipment and machinery, which resulted in direct losses estimated at
millions of shekels.
- The failure to provide the Palestinian governorates with adequate quantities of water
has created a major setback for the owners of industrial establishments that are
dependent on water.
- Continuing to impede the movement of goods (import and export, marketing of
products), as the import of dual-use materials that constitute major production inputs
for some Palestinian industries, has been prohibited.
- Competition of the with settlement products, as the Palestinian market continued to be
an important market for the disposal of Israeli exports in general and settlement exports
in particular, as the Ministry of National Economy seized more than 500 thousand
shekels-worth Israeli settlements' products.
3- Local government sector: The local government sector suffered a number of violations,
including those targeting infrastructure, impeding the implementation of projects or
Correspondence received by the Authority from the Ministry of National Economy on January 14, 2020. .15