Statistics of Economic Establishments Operating in Palestine in 2017

Later to the readings in the previous publication related to statistics for establishments operating in various Palestinian economic sectors in the West Bank and recorded in the Population and Establishments Census for the end of 2017..in the West Bank and the Gaza Strip, most of these establishments stopped operating due to the spread of the Corona pandemic and the precautionary measures taken by most countries of the world, from stopping work and limiting it to some establishments operating in sectors related to medicine and pharmaceuticals and the production of bread and basic foodstuffs,

The number of employees in private-sector establishments, the non-governmental sector and government companies in the West Bank and Gaza Strip at the end of 2017 was 444,060 employees, of whom 342,733 were male workers, while the women numbered 82,116 female employees..thus the proportion of employed men reached 80.7%, while the women amounted to 19.3%...From these statistics, the number of employees in the private, non-governmental sectors and government companies in the West Bank amounted to 309,822 employees...of whom 228,113 were male, while the women employed in these private sectors amounted to 62,498 females...As for the Gaza Strip, the number of employees in the same private and non-governmental sector up to the end of 2017 was 134,238 persons, of whom 114,620 were male, and the females numbered 19,618..

Most of these establishments ceased operating pursuant to the emergency law and the home quarantine instructions issued by the Palestinian National Authority..to confront the spread of the Corona pandemic...and consequently revenues stopped for the owners of most of these establishments..Although most workers do not go to work, their salaries and wages were said to continue, as the authorities announced that they warned against any termination of services of workers employed by these institutions or not paying their wages in full and as usual...even if these establishments did not operate, and to further focus on the number of workers in the West Bank governorates, for example, which as we indicated above totaled 309,822 workers...the Population, Buildings and Establishments Census for the end of 2017 provided data cited in the report of the Palestinian Central Bureau of Statistics (PCBS) mentioned earlier about the details of the number of employees in the private and non-governmental sectors in the governorates of the West Bank..as follows:

The number of employees in establishments operating in the private and non-governmental sector up to the end of 2017 was: in Jenin Governorate 30,184 workers; in Tubas and the Northern Jordan Valley 3,755 persons; in Tulkarm 17,451 persons; in Nablus 47,967 workers; in Qalqilya 9,688 persons; in Salfit 7,013 workers; while Ramallah and Al-Bireh had 63,113 workers; in Jericho and the Jordan Valley 4,647 persons; in Jerusalem 34,763 workers; in Bethlehem the number of workers was 29,192 workers; and in Hebron they numbered 62,049 workers...

That These statistics do not include the number of civil and military public-sector employees and users, who it was said will not have their salaries affected by virtue of working in the public sector and who exceed more than 130,000 employees..., nor do these statistics mention the number of Palestinian workers who work inside the Green Line and in the settlements, whether with permits or without permits, and whose work and salaries have stopped because Israelis have closed entry into and from them, until the campaign to confront the coronavirus pandemic ends and it is not exactly known when such campaigns will end....Consequently, there is a complete cessation of their salaries according to news reports ..and this is also a heavy burden on the government given that their numbers exceed 100,000 workers..!!

Given the importance of the private sector, and the necessity of compensating it in a measured manner because of its importance in moving and growing the economy, and to avoid the economy sliding into a state of recession..I put forward some preliminary proposals in this regard,

Preliminary proposals...related

It is clear that the business sector was harmed by the closure of most operating establishments in the private sector, including individuals and individual establishments, and by the absence of active labor at these establishments due to the state of emergency declared by the government, and it is not easy to accurately quantify losses and identify the parties who were affected and who incurred material losses and lost profit opportunities, but approximate estimates can be made...through statistics, when the country recovers, God willing, soon from this crisis regarding control of the virus and its containment and eradication..it is necessary that each operating private institution provide the government with data on the value of wages paid to its absent workers due to the emergency, and committees are to be formed from the Ministries of Labor, Economy and Finance, the Chambers of Commerce and any experts and parties the government deems necessary to participate, in order to audit the validity of the data and to refer to tax records, so that those registered with the tax authority are dealt with according to the proper procedures, and financial information and the institution's estimated annual profits are obtained based on the data submitted to the tax authority and previous tax clearances; owners of businesses are to be compensated for the wages paid to workers absent due to the state of emergency, and small institutions are to be compensated first for the wages paid in installments and in amounts equivalent to the payments made to the employees, in cases where no work was performed, and a settlement may be adopted concerning salary amounts that are considered high relative to wage levels...this on one hand, and on the other hand, owners of establishments and individuals are to be considered for compensation in the value of the monthly net profit generated by the institution in the event of full operation..because business owners lost their business income and also paid their workers' wages from their own pockets, not from profits generated by the business, from which they spend on their families and settle their obligations, and therefore the state must compensate at an agreed percentage..which should, of course, not be 100%..to calculate a reasonable percentage that is deducted based on the private sector's contribution to the public effort..which the state undertook, and given the country's financial condition...As for medium and large companies, each case is to be studied individually but according to fair criteria and bases, with understandings that the private sector, and especially such companies, in addition to the necessity of confirming that the private sector and its support are necessary to run the national economy within limits that allow it to recover and resume activity, should be affirmed to record donations and support provided by the private sector from its taxable income, and the private sector can also be supported by studying with operating banks the provision of credit facilities at reduced interest rates, and reducing the profit margin added by banks to the interest they charge on such facilities and loans..care should be taken of the banks providing such facilities regarding the tax rates levied on their taxable income, so that their taxable income is divided into two parts: the first part, ordinary profits from other facilities subject to the usual tax rates, and the second part to be income subject to taxation from the facilities for the campaign to support the private sector...at a lower than usual rate...
As for individuals, institutions and practitioners who are not registered for tax, compensation for them will be different, since the tax record is the basis for compensation, because taxes collected from business and professional profits are a main tributary to state finances for the state to implement its projects in the country .
For the elderly aged 65 and over who do not receive a monthly income, i.e., who have no source of income, health coverage is to be provided by enrolling them in the health insurance system for a symbolic amount of 50 shekels annually, and to those in this age group who have prior subscriptions, when their validity expires, they will be provided for according to the new perspective for the elderly..

As for individual practitioners who are registered for tax and whose daily work has been disrupted as a result of the state of emergency, they can be compensated with amounts equivalent to the minimum wage limits adopted in the law..
What remains of the categories, especially workers inside the Green Line, work is to be done in cooperation with the General Federation of Palestinian Trade Unions to settle compensations with the Israeli side, and to activate social security policies adopted by the Israelis and the Histadrut in such circumstances and according to the treatment of Palestinian workers inside with the treatment received by Israeli workers as a result of these circumstances. And based on the Paris Agreement and the understandings of the two sides concerning workers..and given that they are an occupying authority

Begin reconsidering the postponement of the Social Security Law and start reactivating and reaffirming its establishment while the government resolves the contentious issues that were behind its postponement, given the importance of such a law for employees in the private sector...These are some of the ideas and proposals, although they may be premature, but it is necessary that the government have a vision and preparedness on the subject of quantifying losses and discussing solutions..for such crises, and to consult with international and Arab bodies..

The study seriously considers establishing a Bank for Development and Reconstruction in Palestine, according to certain standards, in cooperation with the United Nations and international financial institutions, and the donor countries..and strengthening communications with capable Arab countries regarding the Arab financial safety net...and negotiating with these countries on the subject of increasing contracts with Palestinian professions and competencies to work according to clear policies in those countries...

28-3-2020