Will the IMF bailout Gaza????

Cash-strapped in Gaza...

The Hamas government in the Gaza Strip is increasing taxes and introducing a string of levies to fight what officials and business leaders say is a mounting financial crisis in the Palestinian territory.

The Islamist group this month sharply raised taxes on cigarettes and tobacco products, in some cases trebling levies on certain brands. Fuel taxes have also been increased, as have administrative charges for granting licences to shop owners and businesses. Operators of smugglers’ along the Gaza-Egypt border say Hamas is now taxing the import of almost all goods brought in underground.

In another sign that the Hamas government is becoming unable to fulfil its financial commitments, 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.

“Hamas is running into a financial crisis in the Gaza Strip,” said Mokhemra Abu Saada, a professor of political science at Gaza’s al-Azhar University. “That is why Hamas is collecting all these taxes.”