Israel's financial minister reduces funding for Palestinians.
The Palestinian Authority's revenue from taxes and tariffs in the West Bank is being withheld by Israel. Finance Minister Smotrich wants to keep hold of this money and use it to compensate Israeli victims of Hamas attacks instead. This move has been met with disapproval from the US government.
The far-right Israeli Finance Minister Bezalel Smotrich has decided to withhold 32.5 million dollars (approximately 30.3 million Euro) from the Palestinian Authority and give it to Israeli victims of terror. He announced this on platform X, stating it is a matter of 'historical justice'.
Smotrich accused the Authority of supporting terrorism and paying families of Palestinian terrorists and prisoners. The compensation payments allocated by the Israeli courts for terror victims and their families should come from the funds meant for the Palestinian Authority, according to the Minister.
The US State Department described this decision as 'extremely short-sighted' and warned it could destabilize the situation in the West Bank, contradicting Israel's own security interests. Matthew Miller, a spokesperson for the US government, said the funds were for the Palestinian population and should be handed over to the PA immediately.
Since the Hamas attack on October 7, the Israeli authorities have been blocking certain parts of tax and tariff revenues for the Gaza Strip to avoid funds reaching Hamas.
Israel is responsible for collecting taxes and tariffs on behalf of the Authority. These payments, accounting for approximately 65% of the revenue of the Authority in the West Bank, also cover salaries. The PA commenced disbursing funds to families of Palestinian prisoners and those killed by Israeli soldiers or settlers once more at the end of February after a pause.
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- This decision by Israeli Finance Minister Bezalel Smotrich to withhold funds and allocate them to Israeli victims of terror in the Gaza Strip has sparked controversy within the Palestinian territories and drew criticism from international entities, such as the US State Department.
- The ongoing tension between Israel and Palestine continues to impact the Gaza Strip, with Israel blocking certain parts of tax and tariff revenues to prevent funds from reaching Hamas, a group deemed as a terrorist organization.
- The financial situation of the Palestinian Authority, which heavily relies on tax and tariff revenues collected by Israel, has been significantly affected by Israel's decision to withhold funds and redirect them to victims of terrorism, causing concerns about the stability of the Palestinian territories.
