The objective of the present Fair Tax Monitor (FTM) OPT is to provide the public, that is to say
the citizens, and civil society organizations (CSOs) with a quantitative and qualitative analysis and overview of all components of the Palestinian tax system. The FTM relies on publicly available data on the tax burden, distribution of taxes and management of tax administration to establish an evidentiary base for effective assessment of the fairness of the tax system, and to identify the gaps and consequences of existing policy solutions.
In particular, the assessment seeks to:
- Provide detailed analysis of the types of taxes levied in Palestine, in addition to a historical overview of legislative and administrative changes to the tax system in the OPT;
- Showcase some of the trends in policy development and their ramifications;
- Measure the size, structure and distribution of the tax burden – the distribution of income tax between individuals and companies, and the contribution of direct and indirect tax on total collected revenues;
- Identify and assess tax justice according to a common research framework (CRF) developed by Oxfam, Tax Justice Network Africa and other partners14 within six main categories:
i. Progressive tax system;
ii. Sufficient revenues, tax evasion and tax avoidance;
iii. Well-governed tax exemptions;
iv. Effective tax administration;
v. Pro-poor public spending;
vi. Accountable and transparent public finances.
- Identify the main policies and practices that affect the fairness of the tax system;
- Propose policy recommendations that can address and improve the existing tax system, and promote progressiveness and greater efficiency.