Gaza Faces Goods Embargo Amid Tax Dispute: Israel Cites Hamas Fees, Hamas Denies

Israel has halted the entry of all commercial goods into Gaza for the past two days, citing a tax dispute between local merchants and Hamas. The Coordinator of Government Activities in the Territories (COGAT), the Israeli military body responsible for humanitarian affairs in Gaza, announced the suspension on Wednesday. COGAT alleged that local merchants initiated this decision due to a 10,000 shekel ($3,220) fee imposed by Hamas on each truck entering Gaza, along with a demand for 30 percent of all sales in Gaza to be conducted in cash.

This embargo is poised to affect a vital supply line for the 2.1 million residents of the Gaza Strip, who are entirely dependent on Israeli crossings for food and goods. The territory is already grappling with severe food insecurity, with a global food monitor having previously warned that over two-thirds of Gazans could face acute hunger by the end of the year.

Gaza's government media office refuted these claims on Thursday, denouncing what it called a "blatant disinformation campaign and false statement." The office stated that the Israeli action was an attempt to shift blame for the disruption of truck entries onto the governing apparatus in Gaza. They clarified that the fee mentioned was a voluntary contribution to a fund supporting vulnerable populations, such as widows and orphans. Furthermore, they explained that cash payments were encouraged due to an acute cash shortage in the war-torn territory but were never mandated.

The halt to commercial shipments, which include essential items like fruit and winter clothing, exacerbates an already critical humanitarian situation as winter approaches. Aid groups typically supply staple foods, while merchants import perishable items like fruits and meat, according to COGAT data. Humanitarian workers express concerns that the suspension could lead to price increases, emphasizing the necessity of both aid and a functioning commercial market to maintain affordability.

"The humanitarian sector on its own cannot meet the needs of all the people," stated Shaina Low, a spokesperson for the Norwegian Refugee Council. "The markets need to be functioning."

Nahed Sheheiber, head of Gaza’s private truckers union, contradicted the Israeli account, asserting that Israel, not Gaza's merchants, is responsible for the restrictions. Following COGAT's announcement, Sheheiber's union met with Gaza's Ministry of Economy to voice concerns, suggesting that Israel is using the ministry's alleged fees as a pretext to block commercial goods.

Israel is obligated under a US-mediated agreement to permit a minimum of 600 aid trucks into Gaza daily. However, diplomats report that significantly fewer trucks typically enter, with Sheheiber estimating the number closer to 300, two-thirds of which carry commercial goods.