Israeli officials: Palestinian- Israeli Joint tax envelope collapsed

Israeli officials expressed last week deep concerns following reports that the Palestinians had breached the borders of the joint Israeli-Palestinian Authority tax envelope.
 
Israeli government officials said last week that fallowing reports of the collapse of the border between the Gaza Strip and northern Sinai, the Israeli government would be forced to establish an effective economic border control at the two border crossings; Karni and Erez, between Israel and the Gaza Strip.
 
Reports coming from the area indicated that since the Israel Defense Forces withdrew from the Philadelphi route, between the Gaza Strip and Sinai peninsula , thousands of Palestinians have crossed the border into northern Sinai and El Arish, and bought Egyptian goods at prices much lower than those in the Gaza Strip.
 
The reports also suggested that within a few days after the Israeli military withdrew from the former border route, the route had become a market place.
 
Palestinians businessmen bought fuel, cigarettes, food, livestock, fruit, and vegetables in Egypt, and bringing them back to the Gaza Strip.
 
One Israeli official was quoted saying that the Gaza Strip was being utterly flooded with cheap Egyptian merchandise, without payment of customs duties and customs inspection.
 
Israel would have to take the necessary steps to protect its economy otherwise goods from all over the world would enter Israel without payment of any customs duties or meeting any quality standards.