The developments in the Israeli operations in Palestine and Lebanon are not limited to killings, arrests, and the destruction of roads, houses, bridges, and power stations. Instead Israel is applying a new war tactic that is seldom reported by the media. Israeli authorities have just implemented a new “war tax” which will affect Palestinian merchants who import goods from abroad.

Ahmed Gabr, a merchant from Qalqilia and regular importer of Italian goods, told PNN that the new tax will inhibit his ability to import goods from Italy. He stated, “This is the first time I have heard of a war tax that has nothing to do with a war. West Bank trading has remained unchanged despite many years of occupation- why implement this tax now?”

Economists at the Bank of Israel predict that if the war in Lebanon continues for several more months, the new tax could lead to a loss of more that 14 billion shekels (about $3.2 billion USD), or 2.3% of the annual GDP.

Yossi Arenstein, an economic analyst for the Israeli newspaper Maariv, predict that the new tax will stunt economic growth by 3.4%. He added that the immediate loss in the upcoming weeks could be over 6 billion shekels (about $1.4 billion USD).

This new tax imposed by the Israeli government is merely the latest action stunting Palestinian economic growth. Currently, many investors are reluctant to continue their investments in Palestine due to the economic and political instability in the region.