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UN Resolution 1325
UN Resolution 1325
A Vision for Palestinian Womens Rights Organizations based on the Global Study on the Implementation of UNSCR 1325
(Ten strategies for tackling issues pertaining to Women, Peace and Security)
Date posted: May 06, 2017

MIFTAH recently released a special study from a socioeconomic justice perspective entitled: Proposed Reforms to the 2011 Income Tax Law and its Amendments in both Arabic and English.

The study focuses on three main points:

One: A description of the status quo within the contexts of the income tax law for individuals and companies.

Two: The objection to current taxation policies, which do not contribute to achieving socio-economic justice.

Three: The proposed reforms to the income tax law based on justifications highlighted in the objections to the taxation policies.

According to Tamara Tamimi, MIFTAH coordinator for the project Finance for Development, MIFTAHs efforts towards reforming the income tax law are within the context of achieving tax justice, which is a fundamental component for achieving socio-economic justice given that it is a pillar of good governance. Hence, the study aims first and foremost at proposing reforms to tax brackets and to apply the principle of differentiation on tax rates for individuals and companies.

The study includes several proposals such as:

First: Amendment to Paragraph 1 of Article 12 to increase the tax exemption threshold for incomes of up to NIS42,000 instead of NIS36,000.

Second: Amendment of tax brackets consistent with individuals income whereby there is a 3% tax collection instead of 5% on the tax bracket for incomes of up to NIS75,000; a 5% tax on the tax bracket for incomes up to NIS150,000 instead of 10%; and a 7% tax instead of 15% on the tax bracket for incomes up to NIS240,000. The study also proposes additional tax brackets on which the principle of tax differentiation is applied. That is, an income tax of up to 15% would be imposed on the tax bracket for annual incomes up to NIS360,000, a 20% income tax on brackets of annual incomes up to NIS480,000 and a 30% tax on brackets for incomes over NIS480,000.

Third: The study also proposes that the principle of tax differentiation is applied to companies where the income tax on holding and monopolistic companies reaches 30%; on banking, financial and services companies it is set at 25%; on industrial public shareholding companies at 20%; hotels and tourist companies, at 15%; family and private companies at 15%; and agricultural production shareholding companies at 10%.

It should be noted that a present, an income tax of 15% is imposed on all companies irrespective of their type with the exception of monopolistic and holding companies whose income tax is up to 20%.

In the context of this study, MIFTAH, in cooperation with Ashtar Theater, produced a sketch entitled, Taxationtheater and tomatoes which addressed the issue of tax justice and the importance of reforming the income tax law. The sketch was broadcast on Palestine TV, Al Falastiniyeh and MAAN.

To watch the sketch please click on the link below:

Arabic ...

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