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Israel approves transfer of tax revenues to Palestinian Authority

The Israeli cabinet approved the transfer to pay the Palestinian security apparatus, despite objection by Finance Minister Bezalel Smotrich.
Israeli soldiers are seen in the Palestinian village of Dayr Sharaf, in the West Bank located about seven kilometres (four miles) from the Jewish Einav settlement after an Israeli man was killed leading to dozens of Jewish settlers storming the village on November 2, 2023, amid the ongoing battles between Israel and the Palestinian group Hamas in the Gaza Strip. Three Palestinians were killed on November 2, 2023, by Israeli fire in the occupied West Bank, the Palestinian health ministry said, and an Israeli

The Israeli security cabinet on Thursday approved the transfer of tax payments to the Palestinian Authority, money that was collected and held by Israeli authorities. 

But out of the nearly $188 million of tax payments collected, Israel will deduct the stipends paid by the PA to Palestinian prisoners jailed in Israel and to their families (per legislation adopted by Israel’s Knesset in 2018). It will also deduct the funds the PA transfers to Gaza for former Fatah administrators who lost their positions when Hamas took over in 2006. 

This payment mechanism was first established in 1994, as part of the Paris Accords between Israel and the PLO. Israel collects tax revenues for products imported by the PA which arrive at Israeli ports or airports before being transferred to the West Bank. But over the years, what should have been a routine procedure turned into a political issue.

Thursday's announcement by the security cabinet did not specify how much money will be indeed transferred.

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