Palestinian Authority refuses to receive ‘incomplete’ tax funds from Israel

RAMALLAH, Palestine

The Palestinian Authority refused on Sunday to receive “incomplete” tax fund from the Israeli side after Tel Aviv announced deduction in money sent to the Gaza Strip.

Official sources said that the Palestinian government decision came days after Israeli Defense Minister Yoav Galant announced the transfer of clearing funds minus amounts that were directed monthly to the Gaza Strip.

A government source told Anadolu that “a presidential decision was issued not to receive incomplete clearance funds, because the decision to deduct funds going to Gaza means strengthening the separation of the West Bank from the Gaza Strip.”

The source added that “the decision stands unless Israel retracts these cuts.”

The tax revenues – known in Palestine and Israel as maqasa – are collected by the Israeli government on behalf of the Palestinian Authority on Palestinian imports and exports and Israel in return earns a commission of 3%.

The revenues are estimated to total around $188 million every month and represent the main source of income for the Palestinian Authority.

The Palestinian government uses these funds to pay the salaries of public employees and retirees, who number 140,000 and 53,000, respectively.

These developments come as the Israeli army has widened its air and ground attacks on the Gaza Strip, which has been under relentless airstrikes since the surprise offensive by the Palestinian group Hamas on Oct. 7.

The death toll from Israeli bombardments in the Gaza Strip has risen to 9,500, including 3,900 children and 2,509 women, the government media office in the Gaza Strip announced on Saturday.

Nearly 1,540 Israelis have been killed.

*Writing by Ikram Kouachi