GAZA CITY, Gaza, June 30 (UPI) -- Hamas' general prosecutor closed the offices of the only mobile service provider in Gaza Tuesday on charges of tax evasion.
Police stood outside offices of cell phone service provider Jawwal in Gaza City alongside a posted sign that proclaimed the general prosecutor had given the order for its closure.
Jawwal is part of internet service provider Palestine Telecommunications Company (PalTel). PalTel spokespeople denied any allegations of evasion, to which an economist adds that PalTel was likely paying taxes to the Palestinian Authority, located in the West Bank where the company is registered, and not to the Hamas authorities in Gaza.
The Palestinian Authority criticized Hamas' actions, citing that they were illegal and would instigate conflict. Hamas, an armed political party currently in control of Gaza, is considered a terrorist organization by both the U.S. and European Union, meaning payments to them by Jawwal could possibly sully its image in the international community
This is also true for banks and other firms that have refused demands by Hamas for payments, since they would face international sanctions were they to fulfill them. The conflict could possibly lead to Hamas freezing assets stored in banks located in Gaza, especially the Bank of Palestine, who is registered in the Gaza Strip but pays taxes to the Palestinian Authority.
PalTel also announced its plans to cease operations following Jawwal's closure. This may lead to the end of all cellular services throughout the country, which continued to operate as of Tuesday with no news of if and when they would stop.
