Gaza Faces Commercial Goods Halt Amid Hamas Tax Dispute with Traders

Commercial goods are no longer entering Gaza as traders have ceased coordinating shipments with Israel's military liaison, Cogat, due to a dispute with Hamas over taxes. Cogat stated that traders decided to halt shipments in protest against a 10,000 shekel ($3,220) fee imposed by Hamas on each lorry and a demand for 30% of sales to be in cash.

Hamas, through its government media office, denied these accusations. The office clarified that the 10,000-shekel fee is a contribution to a "voluntary community initiative" supporting vulnerable groups like widows and orphans. Regarding the cash payment demand, Hamas asserted it is an "absolute necessity to address the severe imbalances in the Palestinian market, most notably the acute shortage of cash liquidity".

Cogat warned that this dispute will reduce the total number of lorries entering Gaza, which includes both humanitarian and commercial goods, by half to approximately 300. A significant portion of Gaza's population relies on aid due to years of conflict, displacement, and Israeli restrictions on aid delivery. A global hunger monitor previously cautioned that over two-thirds of Gazans might face severe hunger by the end of the year, with many living in makeshift shelters following extensive destruction during the war.

Nahed Shhaibar, head of the private transport union in Gaza, confirmed that no lorries carrying commercial products from Israel entered Gaza on Thursday. However, lorries with humanitarian aid and commercial goods from Egypt, via an Israeli-controlled crossing, did enter. Diplomats note that the usual daily entry of lorries into Gaza is significantly less than the 600 stipulated under the US-mediated ceasefire, with Mr. Shhaibar estimating the current figure closer to 300, two-thirds of which are commercial goods.

Nickolay Mladenov, high representative overseeing Gaza's recovery, commented that this dispute underscores the need to advance the peace process. He emphasized the urgency for the deployment of the National Committee for the Administration of Gaza (NCAG), supported by the International Stabilisation Force, to protect civilian supplies, humanitarian assistance, and commercial activity from interference. The NCAG, a committee of Palestinian technocrats formed in January, has not yet been permitted to enter Gaza.