RAMALLAH, WEST BANK - The Palestinian Council of Ministers decided on June 28, 2006 to reduce the Value Added Tax (VAT) from 16% to 14.5% starting July 1, 2006.
According to a statement by the Director General for Customs and Excise Department at the Ministry of Finance, Mr. Hatem Youssef, "This decision was issued in an attempt to alleviate tax burdens on Palestinian citizens and to boost the economy."