Israel’s Cabinet, in a meeting set for today, is expected to approve the transfer of tax funds (clearance revenues) to the Palestinian Authority via Norway, after deducting the portion allocated to the Gaza Strip, according to the Israeli Broadcasting Authority’s report on Saturday.
The official broadcasting body stated, “The transfer of the Palestinian Authority’s tax funds through Norway is anticipated to have the Cabinet’s support, yet the monies designated for Gaza will be deducted.”
The report added that the decision is likely to be backed by all government members, with the exception of the National Security Minister, Itamar Ben-Gvir, who is expected to oppose it.
Ben-Gvir has requested further details regarding the outlines of the fund transfers, including information about the guarantees Israel will seek from Norway to prevent the funds from reaching Gaza, as per the broadcasting authority.
On Friday, the broadcasting authority revealed a preliminary agreement between Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich to funnel tax revenues to the Palestinian Authority through a third country.
The Palestinian Authority has not commented on the Israeli Broadcast Authority’s reporting.
Israel collects taxes on behalf of the Palestinian Authority for Palestinian imports of goods, which are supposed to be transferred to the Authority monthly, averaging 750-800 million shekels (around 190 million dollars) of which 270 million shekels (about 75 million dollars) would normally go to Gaza under regular circumstances.
The funds designated for Gaza are divided into approximately 170 million shekels for the salaries of the Authority’s employees in the sector and 100 million shekels to cover the fuel bill for Gaza’s power station.
Concerns of Collapse
The U.S. administration has repeatedly urged Israel in recent months to expedite the tax fund transfers to the Palestinian Authority.
On January 4th, Washington warned Israel that failure to transfer tax funds to the Authority “would lead to its collapse, as it constitutes its main source of income.”
The Palestinian Authority relies on the clearance funds to pay its employees, whose salaries for the period from October to December 2023 were delayed. Only half of the salaries have been paid to the employees, according to an agreement with local banks.
