Ramallah: The Jerusalem Municipality, which is controlled by Israel, has raised taxes so high in the past few years the fees will eventually force the Palestinian residents of Occupied Jerusalem out of their homes, Ziad Al Hamouri says.

Al Hamouri heads the Jerusalem Centre for Social and Economic Rights. Currently an estimated 85 per cent of Palestinian residents are in debt and have indicated they believe the high taxes will be more effective than home demolitions in eventually getting rid of Occupied Jerusalem's Palestinian population.

Taxes would be the invisible factor which would cause Palestinian residents to lose their properties, Al Hamouri told Gulf News.

The municipal property tax known here as "Arnona", has proven to be the biggest threat to Palestinian residents of Occupied Jerusalem, where residents owe up to 25 million shekels (Israeli currency).

Al Hamouri likened the situation to 1948, when many Palestinians lost their properties because of high taxes.

According to Israeli law, a Palestinian merchant in Occupied Jerusalem must pay 280 shekels per square metre of his property annually, and a resident should pay 50 to 120 shekels per square metre of his home.

Jewish colonists, however, living in colonies in the Occupied West Bank are exempt from taxes for long periods of time, on the pretext that they are living in developing areas.