Broadcasting Authority: “Initial agreement” between Netanyahu and Smotrich (right) to transfer tax funds through a third country (Reuters)
The Israeli Broadcasting Corporation expected on Saturday that the Council of Ministers (cabinet), during its meeting scheduled to be held today, Sunday, would approve the decision to transfer tax funds (clearance) to the Palestinian Authority through Norway after deducting the share allocated to the Gaza Strip.
The official broadcaster said, “The Council of Ministers is expected to support the transfer of Palestinian Authority tax funds through Norway, but after deducting the funds allocated to Gaza.”
The authority added, "It is expected that all members of the government will support the decision, with the exception of National Security Minister Itamar Ben Gvir, who will most likely oppose it."
Ben Gvir requested more details about the broad outlines of the money transfer, including information about the guarantees that Israel will request from Norway that the money will not reach Gaza, according to the commission.
On Friday, the Commission revealed an initial Israeli agreement between Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich to transfer tax funds to the Palestinian Authority, via a third country.
The Palestinian Authority did not comment on what was reported by the Israeli Broadcasting Authority.
Israel collects taxes on behalf of the Palestinian Authority in exchange for Palestinian imports of imported goods. Israel is supposed to transfer funds to the Authority monthly, averaging 750-800 million shekels (about 190 million dollars), of which 270 million shekels (about 190 million dollars) are transferred to the Gaza Strip under normal circumstances. 75 million dollars).
The funds allocated to Gaza are distributed at approximately 170 million shekels for the salaries of Authority employees in the Strip, and 100 million shekels to pay the fuel bill for the Gaza power station.
Collapse of authority
The US administration has repeatedly called on Israel during the past months to accelerate the transfer of tax funds to the Palestinian Authority.
On January 4, Washington warned Israel that failure to transfer tax funds to the Authority “will lead to its collapse, as it is its main source of income.”
The Palestinian Authority relies on clearing funds to pay the salaries of its employees, as the payment of salaries was delayed for 3 months, namely October, November, and December, while half of the salary was paid to the employees according to an agreement with local banks.
Source: Anadolu Agency