Our Privacy Statement & Cookie Policy

By continuing to browse our site you agree to our use of cookies, revised Privacy Policy and Terms of Use. You can change your cookie settings through your browser.

I agree

Israel approves plan for Palestinian tax funds to be held by third-party country

CGTN

 , Updated 20:19, 21-Jan-2024
Palestinian workers gather at the Erez crossing between Israel and the Gaza Strip, September 28, 2023. /CFP
Palestinian workers gather at the Erez crossing between Israel and the Gaza Strip, September 28, 2023. /CFP

Palestinian workers gather at the Erez crossing between Israel and the Gaza Strip, September 28, 2023. /CFP

Israel's cabinet on Sunday approved a plan for frozen Palestinian tax funds to be held by a third-party country and reserved the right to decide when the money will be transferred to the Palestinian Authority (PA).

Under interim peace accords, Israel's finance ministry collects tax on behalf of the Palestinians and makes monthly transfers to the PA, which has limited self-rule in the West Bank, but there have been constant wrangles over the arrangement.

Prime Minister Benjamin Netanyahu said the cabinet decision was supported by Norway and the United States, which will be the framework's guarantor.

According to the Times of Israel, the frozen funds earmarked for the Palestinian Authority would be transferred to Norway, which would only transfer them to Ramallah with the express permission of Jerusalem.

Hussein Al-Sheikh, the secretary-general of the Palestine Liberation Organization (PLO) Executive Committee, has strongly rejected any deductions from the tax funds which Israeli collects on behalf of the PA, Palestine's Wafa news agency reported. 

Al-Sheikh urged the international community "to halt this practice of piracy and theft of Palestinian funds and compel Israel to transfer all our funds" without any deductions.

(With input from Reuters)

Search Trends