Israeli Broadcasting Authority: Israel will agree to transfer taxes to the Palestinian Authority
The Israeli Broadcasting Authority expected, on Saturday, that the Israeli Cabinet, during its meeting scheduled to be held on Sunday, would approve the decision to transfer tax funds (clearance) to the Palestinian Authority through Norway after deducting the share allocated to the Gaza Strip.
The official broadcasting authority said, “The Cabinet is expected to support the transfer of Palestinian Authority tax funds through Norway, but after deducting the funds allocated to Gaza”.
The Israeli Broadcasting Authority added, “It’s expected that all members of the government will support the decision, with the exception of National Security Minister Itamar Ben Gvir, who will likely oppose it”.
Ben Gvir requested more details about the broad outlines of the money transfer, including information about the guarantees that Israel will request from Norway that the money won’t reach Gaza, according to the commission.
On Friday, the Commission revealed an initial Israeli agreement between Prime Minister Benjamin Netanyahu and his Finance Minister, Bezalel Smotrich, to transfer tax funds (clearance) to the Palestinian Authority, via a third country.
The Palestinian Authority didn’t immediately comment on what was reported by the Israeli Broadcasting Corporation.
Israel collects taxes on behalf of the Palestinian Authority in exchange for Palestinian imports of imported goods.
Israel is supposed to transfer funds to the Authority monthly, averaging 750-800 million shekels (about $190 million), of which 270 million shekels (about $190 million) are transferred to the Gaza Strip under normal circumstances, $75 million dollars.
The funds allocated to Gaza are distributed at approximately 170 million shekels for the salaries of Authority employees in the Strip, and 100 million shekels to pay the fuel bill for the Gaza power station.
The US administration has repeatedly called on Israel during the past months to accelerate the transfer of tax funds to the Palestinian Authority.
On January 4, Washington warned Israel that failure to transfer tax funds to the Authority will lead to its collapse, as it’s its main source of income.
The Palestinian Authority relies on clearing funds to pay the salaries of its employees, as the payment of salaries was delayed for 3 months, namely “October, November, and December,” while half of the salary was paid to the employees according to an agreement with local banks.
