The government in the Gaza Strip, which has been led by Hamas since 2006, has stressed multiple times that the taxes imposed on cigarettes and shisha tobacco since 2010 are aimed at reducing smoking, and that they are used to fund infrastructure projects and not to pay government salaries — given that tobacco is forbidden in Islam. However, Al-Monitor has learned from a government source that the Hamas government, in light of its financial crisis, has begun using cigarette taxes to pay part of employee salaries.
Speaking to Al-Monitor, the source said: "Because of the fatwa issued by the Palestinian Legislative Council in 2010 prohibiting the use of funds collected from cigarette taxes to pay employee salaries, the government decided to limit their use to restoring infrastructure via sanitation projects. However, recently the government has been using money derived from tobacco taxes — which is placed in a special account at the local post office — [for other purposes], on the grounds that they consider it a debt to be repaid later."
