According to precise estimate, approximately gO per cent of the lncome oftrading houaes and productive enterprises are paid out ln taxes. Scope for developnent is therefore very limited and such establlsbnents are being forced todecl.are themselves bankrupt and close down. Shlomo Amar, the officer in charge of internal affairs ln the nllitary6, 1 8.A/40/702 Engli sh Paqe L42 government, admitted that 90 per cent of the taxes payable by Arab citlzens had been collected in 1984. He estimated that the taxes collected from them in that year amounted to 1.6 biLlion shekels - not includinq other leviea such as customs duty and norker contrlbuiions - hthereas the anrount ap€nt on projects under the supervision of the military governnent in the same year, i.e. on the construction of schools. roads and medical facilities was, accordlng to his own adnlssion, only 272 rnilllon shekels. In other rrords, the balance was paid lnto the lsraeli covernment treasury to lay the foundations for the occupaEion through gettlement, represslon and lntirnidation. Judging by. the annual reporta prepared by the military governmen! there was a sharp increase in tax revenue ln 1984. Indeed only I bil,lion shekels rrere collected in the'year6 1982 and 1983, whereas ln 1984 alone taxation increased by 60 per cent as comPared nith the prevlous biennlum. I am advancing these figures with reservations, for I am convinced that they are grossly underestimated. Indeed, Israeli statistics completely lgnore the amount of taxes collected in the occupied territorles for fear that it might expose the false nature of allegations that such taxea supplement resources allocated from the public budqet of the Zionist State to balance the budget of the occupied territories. The most inportant element in this connectlon is that the Israeli occupatlon authorities are resorling to the tax weapon, not only to alleviate che crltical
**Analysis**
The text appears to be discussing the economic situation in the occupied territories, specifically the taxes collected by the Israeli authorities and the allocation of funds for development projects. The text highlights the disparity between the taxes collected and the amount allocated for development projects, suggesting that the Israeli authorities are using the tax revenue to fund their occupation rather than for the benefit of the occupied territories.

**Category**
Economic development, International trade