Israeli Finance Minister Bezalel Smotrich has pledged to prevent any transfer of Palestinian tax funds to Gaza or to families of Palestinian attackers, he announced on Monday, hinting that he would resign from the government rather than facilitate such transfers.
Smotrich was referencing reports about an agreement, mediated by U.S. National Security Advisor Jake Sullivan, that would allow the Palestinian Authority to send money to its employees in Gaza by enabling Israel to vet the beneficiaries of these funds.
Israel collects taxes on behalf of the Palestinian Authority monthly, comprising Palestinian imports’ taxes, before deducting debts owed to Israeli water, electricity companies, and hospitals. However, increasingly, these transfers are withheld for various reasons, notably the Authority’s payments to individuals deemed by Israel to be "terrorists," and to the families of "killed terrorists."
Recently, Israel stated that it would not allow the Palestinian Authority to transfer funds designated for services and salaries in the Gaza Strip. The claim is that such funds could end up with the Islamic Resistance Movement (Hamas), with whom Israel is at war.
Approval and Rejection
Last November, the Israeli Security Cabinet approved a partial transfer of the tax revenues after deducting about 275 million dollars that the Palestinian Authority had earmarked for Gaza, including salaries. However, the Palestinian Authority rejected this settlement, raising concerns about a possible financial collapse and ensuing chaos in the West Bank.
During his far-right Religious Zionism party’s weekly meeting, Smotrich referred to a report by Channel 12 that aired last Sunday, which detailed Israel's consent to transfer the funds in full, provided it could verify the list of beneficiaries in Gaza to ensure that no money reaches Hamas.
The Finance Minister vowed not to permit the transfer of "not even a single shekel" to what he described as "Nazi Hamas" in Gaza or to the families of "terrorists" from both the West Bank and Gaza. He informed Prime Minister Benjamin Netanyahu that he was "ready to pay the price if the government—God forbid—succumbs to this pressure."
He added, "I want to make this as clear as possible; it will never happen… as long as I am Israel's Finance Minister."
Right-Wing Support
Israeli National Security Minister Itamar Ben-Gvir, leader of the nationalist-extremist Otzma Yehudit party, supported his government colleague's stance on withholding tax funds in his party meeting. He criticized the government policy that allows the entry of fuel and other humanitarian aid to Gaza during conflicts.
He expressed regret over the failure to legislate capital punishment for those he dubbed "terrorists," noting it would enable Israel to execute an elite forces member of the Al-Qassam Brigades, captured during the "Al-Aqsa Storm" operation, for each day Hamas does not release Israeli prisoners.
Families of hostages held in Gaza protested against Ben-Gvir, saying his rhetoric and efforts "put their loved ones at risk."
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