JERUSALEM (Aug. 25)
The Palestine Income tax law, opposed by Jewish commercial bodies, will go into affect on September 1, it was officially announced here by the Palestine Government. This is the first time that Palestinians will have to pay on income tax.
The law exempts unmarried people having an income below 1,800 a year and married people with an income below Â£400, approximately $1,200 and $1,600, respectively.
The official announcement of the Palestine Government explains that the introduction of an income tax in Palestine had as a chief aim the “encouragement of bona fide cooperative societies without prejudice to private industry.”
The Government stated that it had been unable to accede to the requests of Palestine industrialists for the exemption of new industries and an allowance on past losses and sums set aside for reserve because of the necessity to raise increased revenue as a result of war conditions. Also, that the Government felt that the future of industry in Palestine would be determined by other factors than the far law. The Law contains some modifications, however. For example debenture interest may be carried forward in case of less, and local or municipal rates can be claimed as deductions.