Palestinian Prime Minister Salam Fayyad on Tuesday, announced cuts to fuel prices and VAT after more than a week of protests across the West Bank over the spiraling cost of living.
The price of fuel “will be returned to what it was in late August, starting tomorrow,” Fayyad said in a press conference after a cabinet meeting.
“We will reduce the VAT to 15 percent, which is the minimum available to us at the moment.”
The measures were announced as hundreds of government workers gathered in front of Fayyad's office for new protests against the cost of living, a day after a general strike that paralyzed much of the West Bank.
Fayyad said government workers would be paid part of their overdue August salaries on Wednesday, and the rest later this week.
“There will be additional cuts made to the expenses of ministries and government institutions with the exception of the ministries of health, education and social affairs,” he said.
In addition, he announced cuts to the salaries and expenses of high-ranking officials and ministers.
“We will not commit to any new ministerial expenses for travel, rent, transportation or fuel until we get through this financial crisis.”
Palestinians have been holding demonstrations across the West Bank for two weeks now over the cost of living, and particularly the cost of fuel, which has risen sharply in the last two months.