Palestinians call for PM's fall over taxes

[February 04, 2012]  HEBRON, West Bank (AP) -- Hundreds of Palestinian protesters have called for their prime minister's resignation over recent tax and price increases.

Saturday's protest marked the first time a sizable crowd demanded that Salam Fayyad step down, although several smaller protests have been staged in recent weeks.

Fayyad had enjoyed considerable popularity for restoring a sense of personal safety and overseeing a modest economic recovery in recent years.

His income tax hike mainly targets top earners and large companies and is meant to decrease the Palestinians' dependence on foreign aid. But critics say the increases will set off broader price hikes.

Many Palestinians paid only nominal or no taxes during many years of economic downturn as a result of the conflict with Israel.

[Associated Press]

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