VAT director: Drop in tax evasion boosts PA revenues
Published Tuesday 24/04/2012 (updated) 29/04/2012 12:27
VAT director Ahmad al-Helou
HEBRON (Ma’an) -- Top VAT official Ahmad al-Helou told Ma'an on Tuesday that better enforcement of tax procedures has boosted the Palestinian Authority's budget.
The Ministry of Finance VAT Director said VAT revenues increased from 2.4 billion shekels ($638 million) in 2008 to 3.3 billion shekels ($878 million) in 2011.
Updated equipment in Palestinian shops and the use of tax receipts has increased enforcement of tax collection, he said.
However in the 62 percent of the West Bank under Israel's full security and civil control, referred to as Area C, tax evasion continues as the PA is unable supervise procedures, he said.
Al-Helou called on consumers to request tax receipts to improve transparency of VAT collection.
"These taxes are the main sponsor of the PA's savings, and the government depends on them to avoid financial crisis," he said.
The budget deficit stands at $1.1 billion, officials say.