Smotrich said to come up with new proposal aimed at solving crisis over PA tax revenues

Finance Minister Bezalel Smotrich speaks at a conference in Jerusalem, January 11, 2024. (Chaim Goldberg/Flash90)
Finance Minister Bezalel Smotrich speaks at a conference in Jerusalem, January 11, 2024. (Chaim Goldberg/Flash90)

Finance Minister Bezalel Smotrich is reportedly seeking to advance a proposal to address the crisis over hundreds of millions of dollars in tax revenues that Israel has refused to transfer to the Palestinian Authority.

Israel sent some of the funds to the PA but left out nearly half of the amount, which makes up the sum that the PA uses to pay employees in the Gaza Strip, with Smotrich claiming the cash could be transferred to Hamas members.

The PA has refused to accept any of the funds so long as the money for services and employees in Gaza is not included.

The US has leaned hard on Israel to transfer the remaining funds, but Prime Minister Benjamin Netanyahu has yet to budge amid pressure from Smotrich.

However, Channel 12 reports that Smotrich has come up with a new proposal that would see the remaining funds transferred to the PA through a third party, such as Norway, on the condition that none of the money is transferred to the Gaza Strip.

The PA would be allowed to keep the money so long as it is not transferred to anyone in Gaza. If it makes such transfers, Israel will cease handing over any further tax revenues, according to Smotrich’s plan.

Channel 12 does not cite any sources for its reporting.

The network says the security cabinet will soon vote on Smotrich’s proposal.

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