Photo Credit: Miriam Alster/Flash90
Palestinian Authority Prime Minister Mohammed Shtayyeh

Israel will transfer in the coming days the tax funds it collects on behalf of the Palestinian Authority (PA) in the amount of about NIS half a billion, PA sources report.

These taxes were raised by Israel through the economic activity of Palestinians in its territory, as stipulated by the 1994 Paris Accords that dictate the economic relations between Israel and the PA, which the PA suspended last week.

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The funds will be transferred to the PA in the coming days, despite the fact that the PA was instructed its officials not to attend the monthly coordination meeting in the Israeli Ministry of Finance, following the suspension of the Israeli-PA coordination relations, in accordance with Mahmoud Abbas’ decision.

Sources report that the PA estimates that Israel will do its best to preserve the civilian systems in the PA and therefore will not withhold the tax money used to fund it.

Israeli treasury officials confirmed Sunday evening that although they have not received any announcement from the Palestinian side about the meeting that is expected to take place in the near future, they are inclined to transfer the tax money directly to the PA’s bank account and that this does not depend on having a direct meeting with them.

It should be noted that the amount to be transferred to the PA includes the relative portion of the Israeli loan of NIS 800 million, a loan that Israel agreed to provide to enable the PA to deal with the Coronavirus (COVID-19) crisis. The terms of the loan were agreed on before Abbas announced the suspension of the coordination channels.

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