(CLO) Israel plans to use tax revenue collected on behalf of the Palestinian Authority (PA) to pay off a debt of nearly 2 billion shekels ($544 million) that the PA owes to the Israel Electric Company (IEC).
Under a long-standing agreement, Israel collects taxes on goods passing through Israel to the occupied West Bank and transfers the revenue to the PA in Ramallah. However, since the Gaza conflict began, Israeli Finance Minister Bezalel Smotrich has withheld about 800 million shekels to cover administrative costs in Gaza.
Workers of the Israel Electric Corporation. Photo: Flash 90
At a cabinet meeting on January 12, Mr. Smotrich announced that the frozen funds, currently held in Norway, would be used to repay the PA’s 1.9 billion shekel debt to the IEC. He stressed that the decision was related to “a series of anti-Israel actions, including Norway’s unilateral recognition of the Palestinian state.”
According to him, the PA's debt increases interest rates and negatively affects the IEC's reputation, leading to financial consequences for the Israeli people.
The Palestinian Finance Ministry said it had agreed to allow Norway to disburse 1.5 billion shekels from an account opened in January 2023. Of this, 767 million shekels will be paid to Israeli fuel companies to maintain supplies in the coming months, while the rest will be used to pay off electricity-related debts owed by Palestinian distribution companies to the IEC.
However, Mr. Smotrich opposed transferring money directly to the PA, accusing the PA of supporting Hamas's October 7 attack. The PA is currently only able to pay 50-60% of public sector salaries, as Israel continues to withhold so-called "martyrdom compensation" that the PA pays to the families of fighters and victims killed or detained by Israel.
By 2024, the total amount withheld by Israel will exceed 3.6 billion shekels. From October 2023, Israel will begin deducting an average of 275 million shekels per month from tax revenue, corresponding to the PA's allocation to Gaza.
The Palestinian Ministry of Finance stressed that this has exacerbated the financial crisis and that they are coordinating with international partners to ensure the release of the seized funds as soon as possible.
Ngoc Anh (according to Reuters, Arab News)
Source: https://www.congluan.vn/israel-tich-thu-tien-thue-cua-nguoi-palestine-de-tra-no-cong-ty-dien-post330110.html
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