Israel has seized all of the Palestinian Authority’s tax revenue for this month, reports Anadolu.

Israeli television channel “Channel 7” reports that on the orders of far-right Finance Minister Bezalel Smotrich, 590 million shekels (about $198 million) of the 740 million shekels ($248 million) collected on behalf of the Palestinian Authority this month was kept to cover debts. Palestinian.

The report said that the remaining amount was also seized and its transfer to the Palestinian Authority was prohibited. The withholding is said to be intended to cover Palestinian debts to Israeli environmental, water and electricity companies.

A written statement from the Office of Israel’s far-right Finance Minister Smotrich claimed that most of the tax revenue collected by Israel on behalf of the Palestinian Authority was withheld because of “invoicing debts”.

In February, the Palestinian Ministry of Finance said that Israel had withheld $4.4 billion in Palestinian tax revenue.

Occupied Palestine remains dependent on Israel for its foreign trade, and almost all Palestinian imports and exports go through or from Israel.

Under the Paris economic protocol signed with the Palestine Liberation Organization in 1994, the Israeli government collects taxes on behalf of the Palestinian Authority at border points under its control, transferring approximately $190 million monthly to the Palestinian treasury.

However, since 2019, Israel has reduced these taxes, citing various pretexts, such as monthly payments provided by the Palestinian Authority to prisoners and former prisoners. The Palestinian Authority uses this tax revenue to pay the salaries of public employees. This revenue accounts for 65 percent of total state revenue.

Due to tax revenue cuts by Israel, the Palestinian Authority has been unable to fully pay public employee salaries as of November 2021.

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Source: prizrenpost