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Israel-PLO Economic Agreement

Paris, (April 29, 1994)

The economic relations between Israel and all the territories were spelled out in the agreement. The major elements of the agreement were the establishment by the Palestinian Authority of a monetary authority to regulate and supervise banks, foreign currency reserves and transactions. The Palestinians will levy income tax on individuals and corporation, property and municipal taxes. Israel and the Palestinians will have similar import policies. Palestinians will be able to import mutually agreed goods at customs rates different than those prevailing in Israel. The Israeli Shekel will remain legal tender in the areas until an agreement is reached on Palestinian currency. The Palestinian Authority will impose a value added tax similar to Israel (15-16%). This agreement will initially prevail in Gaza and Jericho, and will be applied to other territories as they are evacuated by Israel. The agreement was signed in the French Foreign Ministry by Finance Minister Shochat and the PLO chief negotiation Ahmad Quri (Abu Ala). It became Annex IV of the 4 May 1994 Israel-PLO agreement. Text:

Source: Israeli Ministry of Foreign Affairs