Paper short abstract:

This paper explores taxation systems' role in fiscal legitimacy, questioning how they privilege some or disproportionately affect others, especially under limited sovereignty, using the Palestinian Authority as a case study.

Paper long abstract:

This paper presents an exploration of the formation of fiscal legitimacy under limited sovereignty, with a specific focus on the Palestinian Authority (PA). Utilising fiscal sociology and theories of governance, it analyses the dynamics that dictate public revenues, taxation, and public service provision in the Occupied Palestinian Territories. The paper highlights the impact of external influences, the proliferation of service providers, and Israeli tax extraction, all of which hinder the PA's ability to establish a robust fiscal contract. Emphasising the complexities of revenue mobilisation under limited sovereignty, this study enhances our understanding of the PA's operations, its interactions with Israeli colonial structures, and the politics of tax mobilisation in contexts where statehood is restricted or non-state actors assume governmental roles. This analysis becomes particularly relevant in the context of declining aid flows and increased pressure on the PA to rely on domestic taxation. The paper lays a valuable foundation for future research on taxation and fiscal governance in territories with constrained sovereignty.