Israel is withholding tax revenues intended for the Palestinian Authority amid the brutal war Tel Aviv has been waging against Gaza since October 7.
Norway says it will help facilitate the transfer of tax revenues collected by Israel and intended for the Palestinian Authority (PA), in order to avoid the financial collapse of the authority which partially governs the occupied West Bank.
“The Palestinian Authority will be able to pay salaries, allowing it to continue providing essential services to the Palestinian population, keep schools open and ensure that health workers are paid,” the Norwegian Ministry of Health said. Foreign Affairs in a press release. Sunday.
“This is essential to promote stability in the region and for the Palestinian Authority to have legitimacy among its people,” he adds.
Israel collects taxes on behalf of Palestinians and makes monthly transfers to the PA under the 1994 Oslo Accords, but in November it froze funds intended for Palestinians in Gaza.
The Palestinian Authority was expelled from the Gaza Strip in 2007, but it continues to pay the salaries of many of its public sector employees. Israel says the fund could fall into the hands of Hamas, which governs Gaza.
Tel Aviv, however, later agreed to transfer tax revenues to the Palestinian Authority, deducting the amount intended for Gaza. In response, the PA refused to agree to a partial transfer, saying it would not agree to conditions preventing it from paying its staff. It is estimated that around 30 percent of its budget is spent in Gaza.
Israel launched a devastating military offensive in Gaza following the Hamas-led attack on October 7 that left at least 1,139 Israelis dead. About 240 people were captured, more than 100 of whom were released under a brief truce in November.
As a serious economic crisis deepened in the occupied West Bank, the Israeli cabinet in January approved a plan to freeze tax funds intended for the Gaza Strip, which would be held by Norway instead of being transferred to the Palestinian Authority.
Norway is facilitating an arrangement that will allow the Palestinian Authority to collect customs clearance revenue that Israel collects on its behalf.
Without these resources, Palestinian institutions could collapse, even in the West Bank.
Full declaration👇🏽
– Espen Barth Eide (@EspenBarthEide) February 18, 2024
According to the statement released on Sunday, Palestinian and Israeli officials agreed that Norway would serve as an intermediary to hold the revenues that Israel has so far withheld.
“The Palestinian Authority is then willing to accept the other funds,” Norway said. The share of revenue Norway would keep is equal to the share Israel estimates for Gaza, a Norwegian Foreign Ministry spokesperson said.
Access to revenue is essential to the survival of the Palestinian Authority, which exercises limited autonomy in the Israeli-occupied West Bank and East Jerusalem. It is also a central part of the United States’ postwar vision, which envisions a role for the Palestinian Authority in the administration of Gaza.
Although the decision will provide some economic relief for Palestinians, the deal reflects collusion by the United States and Norway with Israel’s far-right government, Mouin Rabbani, co-editor of the website, told Tel Aviv Tribune Jadaliyya.
“The United States and Norway, while congratulating themselves on saving the Palestinian Authority from bankruptcy, are now active partners not only with Israel but also with its far-right Finance Ministry and are enabling Israel not to fulfill its treaty obligations,” Rabbani said.
“It is particularly regrettable that Norway, rather than mobilizing the international community to compel Israel to fulfill its treaty obligations and simply transfer the entire amount on a monthly basis to the Palestinian Authority, is prepared to play this role and withhold money for the Palestinian Authority, which will then be dispersed with the personal approval of (Bezalel) Smotrich,” Rabbani said, referring to Israel’s far-right finance minister.
The issue of transferring money has been a source of friction within the Israeli government, with some ministers calling for the funds to be distributed to avoid further destabilizing the occupied West Bank.
Since the start of the war, violence has reached unprecedented levels as Israeli forces carry out near-daily raids and mass arrest campaigns in towns and villages across the Palestinian territory.
Israeli soldiers have killed at least 358 Palestinians since October 7, according to UN figures. More than 6,000 people were arrested according to the Society of Palestinian Prisoners and the Commission for Detainees and Ex-Detainees Affairs.
