Israel to use withheld Palestinian tax income to pay debt to state-run electric company

Israeli Finance Minister Bezalel Smotrich (File/AP)
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Updated 12 January 2025
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Israel to use withheld Palestinian tax income to pay debt to state-run electric company

  • Israel withheld Palestinian Authority's sums earmarked for administration expenses in the Gaza Strip since Oct. 7, 2023

JERUSALEM: Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA’s nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co. (IEC), the far-right Finance Minister Bezalel Smotrich said on Sunday.
Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.
Since the Hamas-led attack on Israel on Oct. 7, 2023, Smotrich has withheld sums earmarked for administration expenses in the Gaza Strip.
Those frozen funds are held in Norway and, he said at Sunday’s cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels.
“The procedure was implemented after several anti-Israeli actions and included Norway’s unilateral recognition of a Palestinian state,” Smotrich told cabinet ministers.
“The PA’s debt to IEC resulted in high loans and interest rates, as well as damage to IEC’s credit, which were ultimately rolled over to the citizens of Israel.”
The ultranationalist Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages.
Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.


1,965 Israeli violations recorded against Palestinians in February

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1,965 Israeli violations recorded against Palestinians in February

  • Head of Wall and Settlement Resistance Commission condemns attacks as a continuation of ‘terror’ against Palestinians
  • Violations included assaults, uprooting trees, burning fields and preventing olive pickers from accessing their lands

LONDON: Israeli forces and settlers carried out 1,965 attacks across Palestinian towns in the occupied West Bank in February, according to a report by the Palestinian Authority.

Muayyad Shaaban, head of the Wall and Settlement Resistance Commission, condemned the attacks as a continuation of the “terror” against the Palestinian people, their land and property.

The commission documented 1,454 attacks by Israeli forces and 511 by settlers, most of which were concentrated in the governorates of Hebron with 421 attacks, followed by Nablus with 340, Ramallah and Al-Bireh with 320, and East Jerusalem with 210 attacks.

Violations have included direct beatings of Palestinians, uprooting trees, burning fields, and preventing olive pickers from accessing their lands.

Israeli forces have seized land and demolished homes and agricultural facilities under the pretext of “security,” which has enabled settlers to expand their settlements, according to Wafa news agency.

Shaaban said: “What is taking place represents an organized methodology aimed at emptying the land of its owners and imposing an integrated racist colonial system.”

Israeli settlers have poisoned and uprooted a total of 1,314 trees, including 1,054 olive trees, in the areas of Ramallah, Bethlehem, Hebron, Nablus and Tulkarm. The olive groves have been a lifeline for Palestinians in the West Bank, with an estimated 80,000 to 100,000 families relying on the olive harvest for their livelihoods, according to the UN Human Rights Council.

In February, Israeli forces demolished 122 structures belonging to Palestinians, including 56 inhabited homes, nine uninhabited homes, 34 agricultural facilities and 18 sources of livelihood. More than one-third of these demolitions took place in Jerusalem, totaling 46 structures.