Posted on 07/03/24
| News Source: JPost
Israel transferred 435 million shekels ($116 million) of withheld tax revenue to the Palestinian Authority, the first such transfer since April, the Israeli and Palestinian finance ministries said on Wednesday.
Israel collects tax on goods that pass through Israel into the West Bank on behalf of the Palestinian Authority and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.
Since the Hamas-led attack on Israel on October 7, Israeli Finance Minister Bezalel Smotrich has withheld sums earmarked for administration expenses in Gaza. Israel also deducts funds for electricity, water and costs to treat Palestinians in Israeli hospitals.
Even after these deductions, Palestinian officials say the amount is far below taxes collected each month.
The ultranationalist Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the October 7 attack in Israel led by the Islamist terror organization Hamas, which controls Gaza. The PA is currently paying 50%-60% of salaries.