The Israeli occupation authorities announced today, Monday, new punitive financial measures against the Palestinian Authority, which included the seizure of clearance funds and the deduction of the vast majority of them. This step comes amid a severe financial crisis afflicting Palestinian institutions, threatening their ability to meet their obligations towards employees and vital sectors.
Bezalel Smotrich's office, the Israeli Minister of Finance, confirmed that Tel Aviv decided to deduct the largest part of the tax revenues collected on behalf of the Palestinian side during the current month. The Israeli statement claimed that these deductions aim to settle outstanding bills and debts owed to Israeli entities, a step that reflects the current government's hardline approach.
Clearance funds are known as the taxes and customs duties imposed by Israel on goods imported into the Palestinian territories through ports and crossings it controls. Under economic agreements, Israel collects these funds for a specific commission, to be transferred monthly to the Palestinian Authority's treasury.
Digital data revealed that the total revenues collected this month amounted to about 740 million shekels, equivalent to approximately 248 million dollars. However, the Israeli Ministry of Finance deducted 590 million shekels from this amount, which represents about 80% of the total assumed monthly revenues.
Israeli sources justified this massive deduction by stating that it would go to cover outstanding debts to electricity and water companies and environmental bodies affiliated with the occupation. The measures did not stop at the deduction only, but also included freezing the remaining balance of funds and preventing its access to the Palestinian government's accounts in Ramallah.
These decisions fall within a systematic policy pursued by Smotrich since he took office, aimed at financially restricting the Palestinian Authority in response to its diplomatic moves. This policy specifically targets punishing the Palestinian side for its recourse to the International Criminal Court and UN institutions to prosecute the occupation.
For his part, Palestinian Prime Minister Mohammed Mustafa stated that what Israel is doing represents a comprehensive siege that does not stop at the borders of the Gaza Strip, but extends to suffocate the West Bank and Jerusalem. Mustafa considered that the use of financial tools as a political pressure tool is part of the colonial schemes aimed at undermining the Palestinian entity.
The Palestinian official explained that the pace of Israeli deductions has escalated unprecedentedly during the past year, as Tel Aviv refrained from regularly transferring tax revenues. He described these measures as 'another face of the occupation,' stressing that the government is seeking through international channels to pressure for the release of these financial rights.
Official reports indicate that the total Palestinian funds held by Israel have reached record levels, with previous government sources estimating the amount at about 4.4 billion dollars. This continuous detention has led to the Authority's inability to fully pay public sector employees' salaries for long periods, and increased the indebtedness of local banks.
In light of this escalation, the Palestinian economy faces existential challenges with the accumulation of debts to the private sector and the decline in citizens' purchasing power. The Palestinian government continues its attempts to provide the minimum basic needs, amid warnings of an imminent collapse of the service system if the Israeli piracy of funds continues.
These deductions have escalated in recent months, representing another occupation aimed at subjugating our people by economically suffocating the West Bank.
שתף את דעתך
Israel escalates its financial war, deducting most of the Palestinian clearance funds