Should The Legal and Judicial System of Palestine Keep, Amend or Abolish Income Tax?

This study investigates the satisfaction degree of income tax paid by the average Palestinian taxpayer based on the tax law in Palestine, a Law by Decree No. (8), of 2011 imposed on income. This study also exposes the degrees of satisfaction on income tax that relates to (income tax brackets and rates, income tax exemptions, and income tax deductions). As a result, the allocated objectives have met the following findings that show that income tax revenues in Palestine are less than the operating expenses of the income tax department. Further, the Palestinian individuals are dissatisfied with the current income tax brackets and rates, income tax deductions and income tax exemptions that are in the prevailing Palestinian income tax law. Taxpayers of high income are also dissatisfied with tax rates and brackets being greater than the taxpayers of low income. The findings then show that there is a consensus by all of the respondents that tax exemptions are unfair. This study recommends the related parties at the Palestinian Ministry of Finance and the legislative council to abolish and cut income tax paid by the taxpayers. Instead, it emphasized keeping the income tax paid by legal taxpayers and valid entities. It also recommends that the lawmakers in Palestine should incorporate the income taxes into indirect taxes.