Knesset passes law to deduct compensation for terror victims from PA tax revenues over pay-for-slay stipends

Ariela Karmel is a political correspondent at The Times of Israel. She previously reported for Calcalist and Haaretz. She holds an MA in Middle Eastern and African History from Tel Aviv University and a BA in Political Science from the University of British Columbia.

The Knesset votes 29-5 to grant final approval to a law offsetting compensation paid to terror victims by making additional deductions from tax revenues meant to be transferred to the Palestinian Authority.

The deductions will apply in cases involving attackers or their families who receive regular payments from the PA under a controversial arrangement dubbed pay-for-slay by critics, and which Ramallah has claimed to reverse, though Israel says it has continued.

Israel has withheld all of the PA’s clearance revenues — taxes collected by Israel on the PA’s behalf under the Oslo Accords — over the past year, arguing that Ramallah allocates some of that money for terrorists and their families.

Since the Hamas-led October 7, 2023, attack on Israel, which sparked a crackdown on terrorists in the West Bank, it has also no longer transferred the monthly sums the PA once directed to Gaza.

Altogether, the Gaza and “pay-for-slay” withholdings constitute nearly NIS 2 billion ($600 million), or about a fifth of the total annual clearance revenues.

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