Israel Cuts 6.93 Billion Shekels from Palestinian Tax Revenues

Jerusalem, MINA – Over the last few years, the Israeli government has deducted approximately 6.93 billion shekels from Palestinian tax revenues and has refused to return these funds, exacerbating the financial difficulties faced by the Palestinian Authority (PA), according to the latest statistics of the Palestinian Ministry of Finance, Wafa reports.

Under interim peace agreements dating back to the early 1990s, Israel collects taxes and customs on behalf of the Palestinian Authority and transfers them to the latter on a monthly basis.

Since the onset of the Israeli aggression on Gaza in October 2023, Israeli authorities have deducted nearly 2.55 billion shekels from the tax revenues allocated for Gaza, averaging 255 million shekels per month.

These deductions are part of Israel’s strategy to press the PA into easing payments to its employees and retirees in Gaza, including salaries for government employees in essential sectors such as health and education.

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In addition to the Gaza deductions, Israel has withheld 3.48 billion shekels in funds intended for the families of martyrs and prisoners, a practice ongoing since February 2019. These deductions average 53.5 million shekels per month, with Israel continuing to block the release of these funds .

Furthermore, Israel has also retained over 900 million shekels in taxes collected from Palestinian travelers at crossings with Jordan, bringing the total deductions to around 6.93 billion shekels.

The Palestinian Ministry of Finance has reported that Israeli deductions for services such as electricity, water, sewage, and hospital bills from tax revenues have accumulated to roughly 20 billion shekels since 2012.  Israel has yet to audit the bills and deductions from clearance funds, including long-term charges for Gaza’s utility consumption, which averages between 40-50 million shekels per month.

These financial measures are part of Israel’s broader pressure campaign against the PA, impacting its ability to meet its financial obligations to its citizens, particularly in these challenging times. (T/RE1/P2)

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Mi’raj News Agency (MINA)