Photo via aljazeera.com
Merchants halt Gaza shipments amid Hamas tax dispute
Israeli authorities report commercial goods stopped entering Gaza over contested fees; supply cut could reduce daily truck flow by half.
What happened
Israeli military authorities announced Wednesday that Gaza merchants have suspended coordination for commercial goods shipments, citing what COGAT described as coercive taxation by Hamas. According to COGAT, merchants reported that Hamas imposed a 10,000 shekel ($3,220) fee on each truck entering Gaza and demanded 30 percent of sales be conducted in cash. COGAT also cited reports that Hamas security personnel arrested the son of a merchant who refused to comply, prompting traders to suspend operations out of fear for their safety.
Hamas denied the accusations in communications to international mediators including Egypt, Qatar, and Turkey, saying it "categorically" denied imposing taxes or government fees on commercial trucks. The Gaza government's media office characterized the 10,000-shekel fee as a voluntary contribution to a community initiative supporting widows and orphans, and said cash payments were encouraged due to an acute cash shortage, not mandated.
The suspension cuts off a vital supply source at a critical time. COGAT said the merchants' decision would reduce the total number of trucks entering Gaza by roughly half, to approximately 300 daily trucks carrying both humanitarian and commercial goods. Commercial shipments typically include perishable foods, fruit, and winter clothing that supplement staple aid supplies. The halt comes as Gaza approaches winter with the majority of its 2.3 million population dependent on aid following three years of war and displacement.
The dispute signals deepening strain on ceasefire implementation. COGAT warned in letters to international representatives involved in the ceasefire that the merchant suspension could undermine the agreement. Nickolay Mladenov, the Gaza representative of the US-backed Board of Peace tasked with implementing the ceasefire, condemned reported "threats and coercion" against merchants.
Chanakya's Move
This is a coordination failure that benefits Israel's broader negotiating position. By publicly stating that merchants have suspended coordination due to Hamas coercion—and effectively endorsing that suspension rather than overriding it—COGAT creates diplomatic cover to reduce supply flow into Gaza without appearing to impose a unilateral blockade. Israel frames the supply cut as a merchant choice driven by Hamas tax demands, shifting blame away from Israeli policy. Hamas counters that the fees are voluntary and that Israel is manipulating merchants for geopolitical leverage over ceasefire talks. The real play: both sides are using merchant grievances as a proxy for contest over who controls Gaza's supply chain and economic policy post-war. For Israel, reduced supply strengthens leverage in ongoing ceasefire disputes over hostage releases and Hamas disarmament. For Hamas, claiming the fees are voluntary and that Israel is sabotaging the economy reinforces its narrative of Israeli occupation. The move could destabilize if merchants remain suspended or if international mediators press Israel to override the merchant decision.