(v) The right to equal access to public services
There is a policy that means to show residents and the world that Jerusalem is a “united” city, that its residents are equal in the eye of the law, without discrimination, and that they enjoy equivalent municipal services. Furthermore, Israeli law stipulates that the portion of municipal services received by any given sector of the population must be equal to the portion of taxes that they pay. However, for residents of East this is far from their reality as will be shown in this paragraph. First, the municipality tax policy is described. This will be related to the services received.
Arnona (municipal) taxes
The Arnona municipal tax was imposed on the Palestinian population of East Jerusalem after the Israeli occupation in 1967. However, it has only recently been acknowledged as a widespread area of discrimination. Amongst Palestinian residents in East Jerusalem, there is a feeling of injustice related to the collection of Arnona taxes. The injustice felt concerns: (i) the legal basis for Arnona taxes; (ii) the criteria for collection; (iii) the level of taxation; (iv) the implementation of the Arnona tax regulations; (v) and the sanctions applied following individual residents' inability to comply with the Arnona tax requests. Furthermore, there is injustice in relation to the way in which and to what extent Arnona taxes are returned to the Palestinian residents in East Jerusalem in the form of municipal services as will be described below. The Arnona tax can be divided into residential taxes and business taxes.
Residential taxes
Arnona rates are graded by area, situation of the dwelling, neighbourhood, and construction quality, corresponding to four levels of construction and size. There are no written criteria for designation of neighbourhood, and rates can vary considerably depending on the city's arbitrary classification of the dwelling's location. Arnona bills can exceed the annual rent of low-income families, for example in the Old City as this area is classified as 'Area A'. Furthermore, the tax structure does not take into account differences in income and lifestyle. Because Palestinian houses are built to accommodate a large number of household members and are usually over 120 square meters, the rates are highest for East Jerusalem. However, area does not automatically correspond with luxury. For example, large verandas, typical for Palestinian houses, are included in the area assessments.
Businesses taxes
Commercial property is assessed and charged by size, and not by economic activity or income. Jerusalem is the only city in which the Arnona fee is unified per square meter for offices, services and commerce. Therefore, the minimum Arnona fee in Jerusalem is much higher than in other Israeli cities. This puts disproportionate burdens on independents with small businesses with lower income and more insecurity compared to big companies. Studies show that the average monthly incomes of private businesses in West Jerusalem are much higher than in East.
Furthermore, the income levels of businesses in East are strongly affected by the closure policy as will be described under 'the right to freedom of movement'. However, no adjustment is made in Arnona. This has negatively affected the development of trade and has caused several small and middle-sized enterprises to close within and around the Old City. In a survey conducted by JCSER, it was concluded that 250 out of 1,000 shops in the Old City had been closed.
Finally, the Municipality has intensified the pressure on Palestinian residents as it has constantly been calling for an annual rate increase. This means that the same person, who saw his business decline because of the closure, is forced to pay taxes that have been rising 10-12 percent every year since 1993.
Seen on the background of the uneven socio-economic and demographic conditions and the uneven income levels between East and West Jerusalem, the collection of taxes based on unified fees disadvantages the Palestinian residents of Jerusalem. The problems concerning Arnona are widespread in East Jerusalem and bear heavy impact on the daily life of its citizens and their ability to maintain a living and secure the future existence of their families in the city. Many Palestinian residents of the city have been subjected to various punitive measures for being unable to pay the taxes. These range from fines to seizure of property and imprisonment. If owners of both residential as well as business property are unable to pay the tax, the Municipality files a case against them, which can finally lead to the closure of the business and the auction of the real estate. With regard to property, this auction usually favours Jewish settlers.
Municipality services
Structural discrimination against the Palestinian population in East Jerusalem is reflected in municipal budget and services. The following table shows the differences in the budget allocated to the Eastern and Western part of the city, and the number of employees.
Comparison of Allocation of Municipal budgets for 2001-2002 to West and East Jerusalem:
The Israeli government and Municipality have done little to reduce the gap between East and West. The gap in services has been maintained in spite of what is stated in the Israeli law and municipal and government policies as mentioned above. The garbage removal service, the state of the roads and sidewalks, street lighting and sewage are all far inferior in East Jerusalem compared to the Jewish side.
Some examples to show the differences