Israel considering transferring tax revenues to Palestinian Authority via third party

Israel’s security cabinet discussed the possibility of transferring funds earmarked for the Palestinian Authority to a third party which could then transfer them to Ramallah during a meeting last night, but did not hold a vote to enact the potential solution, Hebrew media outlets report.

Since October 7, Finance Minister Bezalel Smotrich has refused to hand over the millions of dollars in tax revenues that are owed to the Palestinian Authority, saying that the cash could be transferred to Hamas members.

Despite US pressure for Israel to release the funds, Smotrich has thus far refused to do so, but reportedly suggested the money be transferred to a third party before being handed over, allowing Israel to not be directly responsible for its transfer.

This possibility was discussed in the security cabinet last night, according to reports, as well as in a meeting with Smotrich, Prime Minister Benjamin Netanyahu and Strategic Affairs Minister Ron Dermer.

The ministers were reported to broadly agree with the suggested solution, although National Security Minister Itamar Ben Gvir requested more details before lending his approval.

According to reports, if these plans are enacted, Smotrich will retain the right to freeze all funding to the Palestinian Authority if the money is transferred to Palestinian officials in Gaza.