Reuters: Hamas Quietly Strengthens Its Control Over Gaza by Imposing Taxes Amid Delays in Post-War Talks

SadaNews - Residents in Gaza say that the Palestinian Islamic Resistance Movement (Hamas) is attempting to solidify its control over the territory by managing various affairs, from regulating chicken prices to imposing fees on cigarettes, at a time when U.S. plans for the future of the small enclave are slowly taking shape, raising doubts among the movement's rivals about whether it will hand over governance as promised.

Following the ceasefire that began last month, Hamas quickly regained control of areas that Israel withdrew from and executed dozens of Palestinians whom it accused of collaborating with Israel, theft, or other crimes, Reuters reported.

Foreign powers are demanding that the movement disarm and withdraw from ruling the sector, but no alternative has yet been agreed upon.

Currently, dozens of Gaza residents say they increasingly feel Hamas taking control in other ways. Ten residents, three of whom are merchants with direct knowledge of the matter, said that authorities are monitoring everything that enters areas controlled by Hamas and imposing fees on some goods imported by the private sector, such as fuel and cigarettes, as well as penalizing traders who sell goods at prices higher than their value.

Ismail Al-Thawabteh, director general of the government media office in Gaza, stated that reports about Hamas imposing taxes on cigarettes and fuel are inaccurate, denying any tax increases by the government.

Hamas Reinforces Its Presence

Al-Thawabteh said, "The ministries and government institutions have not yet operated at full capacity; they are only managing humanitarian and urgent service aspects such as health, education, municipal services, and basic life services for citizens."
He added, "Efforts are being made to regulate prices and manage buying and selling movements as much as possible."

He affirmed Hamas's readiness to transfer authority to a new technocratic administration, saying this aims to avoid chaos in Gaza.

He continued, "The government in the Gaza Strip is completely ready to hand over tasks to the new technical administration as soon as an agreement on implementation mechanisms is reached... Our goal is to ensure a smooth transition that preserves national interests and ensures uninterrupted public services."

Hatim Abu Dalal, owner of one of the commercial centers in Gaza, stated that prices are high due to a lack of goods entering Gaza. He added that government representatives are trying to stabilize the economy through field tours, inspecting goods and setting prices.

Mohammed Khalifa, who was shopping at the Nusseirat camp in central Gaza, said that prices are constantly changing despite attempts to regulate them. He added, "Of course, it’s like the stock market; it changes every moment... and the prices are high, of course, there’s no income, the conditions are difficult, life is hard, and we are heading into winter."

Under the first phase of U.S. President Donald Trump’s plan regarding Gaza, the ceasefire began on October 10 and the last surviving hostages taken to Gaza during Hamas’s attack on Israel on October 7, 2023, were released.

Trump’s plan calls for the establishment of a transitional authority, the deployment of a multinational security force, disarming Hamas, and initiating reconstruction.

However, multiple sources told Reuters this week that the likelihood of de facto splitting Gaza between an area controlled by Israel and another run by Hamas is increasingly likely, with Israeli forces continuing to occupy more than half of the territory and efforts to advance Trump’s plan faltering.

Almost all of Gaza’s roughly two million residents live in areas controlled by Hamas, which took over governance from the Palestinian Authority under Mahmoud Abbas and Fatah in 2007.

Gaith Omari, a senior fellow at the Washington Institute for Near East Policy, said that Hamas's actions aim to show both Gaza's residents and foreign powers that it cannot be marginalized.

Omari said, "The longer the international community waits, the more entrenched Hamas becomes."

Hamas Will Not Govern

In response to reports from Gaza residents about Hamas imposing fees on certain goods and other measures, a spokesperson for the U.S. State Department said, "That’s why Hamas cannot govern Gaza, and it will not happen."

He added that a new government in Gaza could be formed as soon as the United Nations approves Trump’s plan, noting progress toward forming the multinational force.

The Palestinian Authority is pushing for a role in the new Gaza government, but Israel rejects the idea of it again managing Gaza. Fatah and Hamas disagree over how to form the new ruling body.

Munther Al-Hayek, a spokesperson for Fatah in Gaza, said that Hamas’s actions send a clear signal that it wants to continue ruling.

In areas controlled by Israel, small Palestinian groups opposed to Hamas have a foothold, challenging the movement.

The residents of Gaza can only endure the harsh conditions, even as more aid enters since the ceasefire.

"They Are Recording Everything"

A senior food importer in Gaza stated that Hamas has not fully resumed its tax imposition policy but noted, "They are watching and recording everything."

He added, requesting anonymity, that they monitor everything that enters through road checkpoints, stopping trucks and interrogating drivers. They impose fines on price manipulators, which contributes to lowering prices, but they remain significantly higher than before the war began, and people complain that they have no money.

Before the war, Hamas's government in Gaza employed up to 50,000 personnel, including police officers. Al-Thawabteh mentioned that thousands of public sector cadres and employees were killed during the war, adding that those who remain "are fully prepared to cooperate with the new administration."

Sources within Hamas and economic experts familiar with the matter said that the movement’s authorities continued to pay employee salaries during the war, but they reduced the cap and unified salaries at 1500 shekels (approximately $470) per month.

A diplomat believes that Hamas has drawn from its cash reserves to pay salaries.

Sources close to the movement stated that the Hamas government appointed replacements for four governors who were killed.

A Hamas official said that the movement appointed people to replace 11 members of its political bureau in Gaza who died.

Mustafa Ibrahim, an activist and political commentator in Gaza City, said that Hamas is exploiting the delay in Trump’s plan "to strengthen its role."

He added, "Will it be allowed to continue doing this? I think it will continue until an alternative government is available."