Israel has transferred 435 million shekels ($116 million) in withheld tax revenues to the Palestinian Authority, according to statements from the Israeli and Palestinian finance ministries on Wednesday. This marks the first such transfer since April. The funds were collected by Israel on goods passing through to the West Bank on behalf of the Palestinian Authority and are usually transferred to Ramallah as per a long-standing arrangement between the two sides.
However, Israeli Finance Minister Bezalel Smotrich had been withholding funds for administrative spending in Gaza since the beginning of the conflict on October 7. Additionally, Israel has been deducting money for electricity, water, and the cost of treating Palestinians in Israeli hospitals. These deductions have significantly reduced the amount of funds transferred to Ramallah each month.
Smotrich has been vocal in his opposition to sending money to the Palestinian Authority, which uses it to pay public sector salaries. He has accused the Palestinian Authority of supporting the attack that occurred on October 7. Currently, the Palestinian Authority is only able to pay 50 to 60 percent of salaries due to these deductions.
In addition to withholding funds, Israel also deducts money equal to the total of so-called martyrs’ allowances, which are payments made by