Report: Israel withholds $1.8bn in Palestinian tax revenues

August 19, 2024 

A man counts Israeli shekel banknotes in Khan Yunis, Gaza, on 30 November, 2023 [Ahmad Salem/Bloomberg via Getty Images]

Over the last few years, the Israeli government has deducted approximately 6.93 billion shekels ($1.8 billion) from Palestinian tax revenues and has refused to return these funds, exacerbating the financial difficulties faced by the Palestinian Authority (PA), according to the latest statistics of the Palestinian Ministry of Finance.

The WAFA news agency said Israel’s policy aims to tighten the economic siege on the Palestinians to pressure the Palestinian Authority to stop payments to its employees and retirees in Gaza, including salaries for government employees in essential sectors such as health and education.

According to the agency, since the onset of the Israeli aggression on Gaza in October 2023, occupation authorities have deducted nearly 2.55 billion shekels ($500 million) from the tax revenues allocated for Gaza, averaging 255 million shekels ($50 million) per month.

In addition to these deductions, Israel has withheld 3.48 billion shekels ($600 million) in funds intended for the families of martyrs and prisoners, a practice ongoing since February 2019.

These deductions average 53.5 million shekels ($14.4 million) per month, with Israel continuing to block the release of these funds.

Israel has also retained over 900 million shekels ($242.6 million) in taxes collected from Palestinian travellers at crossings with Jordan, bringing the total deductions to around 6.93 billion shekels ($1.8 billion).

The Palestinian Ministry of Finance has reported that Israeli deductions for services such as electricity, water, sewage and hospital bills from tax revenues have accumulated to roughly 20 billion shekels ($5.4 billion) since 2012.