Shtayyeh: Israel refused US proposal to solve crisis over Palestinian tax revenues

Palestinian Authority Prime Minister Mohammad Shtayyeh attends a cabinet meeting in the West Bank city of Ramallah, October 16, 2023. (Jaafar Ashtiyeh/Pool Photo via AP)
Palestinian Authority Prime Minister Mohammad Shtayyeh attends a cabinet meeting in the West Bank city of Ramallah, October 16, 2023. (Jaafar Ashtiyeh/Pool Photo via AP)

Palestinian Authority Prime Minister Mohammed Shtayyeh says during a cabinet meeting that Israel refused a US proposal for Norway to transfer to Ramallah the sum of the tax revenues Israel has been withholding from the PA.

Israel refused last month to transfer roughly $275 million in Palestinian tax revenues that it collects on Ramallah’s behalf, as required by the Oslo Accords. The sum amounts to what the PA allocates for services and salaries in the Gaza Strip, from which the Israeli cabinet is seeking to disconnect following the October 7 onslaught. The figure also makes up roughly 30 percent of the total monthly revenues owed to Ramallah.

In response to the decision, the cash-strapped PA refused to accept any of the funds, daring Israel to allow it to collapse in what would place Israel responsible for providing services to millions of Palestinians in the West Bank.

The US has been pressuring Israel to reverse its decision, but Prime Minister Benjamin Netanyahu has refused to budge amid pressure from far-right Finance Minister Bezalel Smotrich.

Netanyahu reportedly agreed to a US proposal for Norway to send a loan to the PA amounting in the funds Israel owes to Ramallah, and then Israel would later pay Norway back for the loan.

However, Shtayyeh says that Netanyahu walked back on the agreement.

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