Arab Merchants in Jerusalem Shut Down to Protest Taxes

By REBECCA TROUNSON

June 30, 1997 12 AM PT

TIMES STAFF WRITER

JERUSALEM — Palestinian merchants shut down stores and businesses throughout East Jerusalem on Sunday and demonstrated outside the walled Old City to protest Israeli tax policies they claim are exorbitant and unfair.

“We live under economic siege,” said Abed Dandis, who owns a clothing store on East Jerusalem’s main shopping street. “Because of Israel, we have no business in East Jerusalem anymore, but still they impose these heavy taxes on us. This is a policy for starvation, or expulsion.”

Dandis and other merchants argue that Israel’s closure of the border between the West Bank and Jerusalem has cut them off from their customers, devastated their businesses and made it difficult for them to pay their taxes.

On Sunday, East Jerusalem’s streets were all but deserted as almost all businesses observed the general strike called by Palestinian officials. Only pharmacies, bakeries and vegetable stands were exempt.

Palestinians launched the protests in response to recent raids on East Jerusalem homes and businesses by Israeli officials who seized goods and equipment in lieu of back taxes owed to the city.

The merchants, many of whom say they may be forced to leave the city or lose their businesses, argue that they should not be taxed at the same rate as businesses in West Jerusalem--especially when the city does not provide equal services to both halves of the city.

Unlike the mostly Jewish west side of the city, the historically Arab eastern half has few parks, poor lighting and streets, and an inadequate sewer system.

Tirza Frankel, a spokeswoman for the municipality, did not discuss the unequal services but confirmed that residents of both sides of the city are taxed at the same rate. “It’s the same everywhere in the city,” she said. “This is by law. It’s one city.”

About a week ago, she said, the municipality began a campaign to enforce collection of taxes, visiting homes and businesses and confronting people who were several years behind in payments. The raids have been conducted on both sides of the city, but East Jerusalem residents are trying to turn an economic issue into a political one, she said.

Dandis and other merchants say the issue is both.

The raids, they say, are part of a recently intensified campaign by Israel and the Jerusalem municipality against the city’s Arab residents that is aimed at reducing their number in advance of final-status Israeli-Palestinian negotiations over the city.

Israel captured East Jerusalem, the West Bank and the Gaza Strip in the 1967 Mideast War. East Jerusalem was quickly annexed and, in a move not recognized by the international community, including the United States, Israel declared the reunified city its capital.

Although peace negotiations have been stalled for months, and scheduled final-status talks have begun in name only, the two sides already are jockeying for position, watching for changes on the ground that could influence the talks’ outcome.

Ahmed Batsh, who represents Jerusalem on the Palestinian Legislative Council, argued that the tax raids are in line with other Israeli measures against the city’s Palestinian residents, including the recently accelerated confiscation of identity cards. Without the documents, Palestinians have no right to live in the disputed city.

“The purpose of this [taxation] policy is very obvious,” Batsh said as he joined about 100 merchants and Palestinian dignitaries gathered outside the Old City’s Damascus Gate. “They want to make it difficult for people to pay, and then they can take their property. They are using the logic of force, not peace, with us.”

Fayed Ashmar, 51, said he was so frightened when tax collectors arrived at his hardware store last week that he paid a bill of about $850 he is convinced he did not owe.

“They told me, ‘Either you pay or we will take your things from the shelves,’ ” Ashmar said.

Frankel, the city spokeswoman, said she could not comment on individual cases.