Israel’s finance
minister told Netanyahu: I will not transfer the tax money to the
Palestinian Authority this month in light of its support for the Hamas
massacre and its appeal to The Hague. Demands an urgent cabinet
discussion on the issue.
Clarification: Due to the PA's lack of
statehood status, Israel is responsible for collecting customs duties
and other tax revenues on its behalf. It transfers them to Ramallah on
a monthly basis, providing funds that amount to nearly 65 percent of
the Palestinian annual budget, which is roughly NIS 18 billion ($5.27
billion).
The Palestinian Authority has for decades provided
financial compensation and other benefits to families of terrorists
jailed in Israeli prisons and "martyrs” killed while carrying out
attacks against Israelis. These payments cost the PA more than $300
million annually, at 8% of its budget.
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This article sheds light on the complex financial dynamics between Israel and the Palestinian Authority. The decision to withhold tax revenue underscores the political tensions at play. The mention of
KinitoPET highlights the significant financial burden imposed by compensating families of convicted terrorists.
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As someone who follows the ongoing Israeli-Palestinian conflict closely, I find the decision to withhold tax revenues from the Palestinian Authority significant yet controversial. The PA's financial support for families of terrorists undeniably fuels tensions, but withholding funds impacts essential public services and could exacerbate humanitarian issues in the West Bank. This move, while intended to pressure the PA to change its policies, risks further destabilizing the region and complicating efforts towards a peaceful
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