The Palestinian economic and tax situation according to the Palestinian National Law and Paris Agreement

This study examines the fiscal structure and economic dependence of the Palestinian Authority (PA) by analyzing both national tax legislation and the 1994 Paris Economic Protocol. It explores the historical trajectory of the Palestinian taxation system, beginning with the Ottoman era and extending through the British Mandate, Jordanian and Egyptian governance, and up to the current Palestinian administrative structure. The research aims to assess the effectiveness and implications of the Paris Protocol, particularly in its treatment of indirect taxation, clearance revenues, trade arrangements, and labor mobility. By comparing the agreement's provisions with its practical application from 1994 to 2024, the study highlights how the Protocol has perpetuated economic dependency and constrained the PA's financial autonomy. Utilizing a mixed-methods approach, the research incorporates legal analysis, economic indicators, and comparative data, supported by official statistics and policy documents. It also investigates key disruptions in revenue flow, including clearance crises and the consequences of political instability, such as the Second Intifada and the Gaza blockade.The findings reveal that the existing tax system and economic agreements are inadequate for achieving fiscal sovereignty or social justice. As a result, the study proposes policy recommendations focused on tax reform, institutional modernization, and the renegotiation of economic arrangements to foster long-term financial independence and equitable development in Palestine.