Palestinians protest tax increase

TULKAREM, West Bank (AP) — Some 300 Palestinians have protested against price hikes and a recent income tax increase imposed by Prime Minister Salam Fayyad.

Fayyad says he needs to raise revenues to slash a debilitating budget deficit that has led to several cash crises in recent months. Fayyad says the tax hikes target only the rich, and the measures are needed to wean the Palestinians off foreign aid.

The tax hike comes at a time of a steep increases in the prices of some basic goods and has sparked protests in the West Bank. On Thursday, about 300 supporters of a small PLO faction, the People’s Party, staged a march in the northern West Bank town of Tulkarem.

Business leaders and the West Bank’s dominant Fatah Party also oppose the tax increase.