SHOULD THE LEGAL AND JUDICIAL SYSTEM OF PALESTINE KEEP, AMEND OR ABOLISH INCOME TAX?
Zahran “Mohammad Ali” Daraghma
Arab American University-Palestine
This study investigates the satisfaction degree of income tax paid by the average
Palestinian taxpayer based on the tax law in Palestine, a Law by Decree No. (8), of 2011 imposed
on income. This study also exposes the degrees of satisfaction on income tax that relates to
(income tax brackets and rates, income tax exemptions, and income tax deductions). As a result,
the allocated objectives have met the following findings that show that income tax revenues in
Palestine are less than the operating expenses of the income tax department. Further, the
Palestinian individuals are dissatisfied with the current income tax brackets and rates, income tax
deductions and income tax exemptions that are in the prevailing Palestinian income tax law.
Taxpayers of high income are also dissatisfied with tax rates and brackets being greater
than the taxpayers of low income. The findings then show that there is a consensus by all of the
respondents that tax exemptions are unfair. This study recommends the related parties at the
Palestinian Ministry of Finance and the legislative council to abolish and cut income tax paid by
the taxpayers. Instead, it emphasized keeping the income tax paid by legal taxpayers and valid
entities. It also recommends that the lawmakers in Palestine should incorporate the income taxes
into indirect taxes.
Keywords: Tax accounting, income tax brackets and rates, income tax deductions, income tax exemptions