In a controversial move that underscores the ongoing tensions between Israel and Palestine, Israel’s far-right Finance Minister, Bezalel Smotrich, has ordered the seizure of 100 million shekels ($26 million) of tax funds that were intended for the Palestinian Authority (PA). Smotrich justified this decision by claiming the funds would be redirected to compensate Israeli victims of terrorism, further escalating the economic and political pressure on the Palestinian leadership.
This action marks the fifth time Israel has withheld tax revenues from the PA, a move that critics argue is part of a broader strategy to weaken the Palestinian government and undermine efforts toward statehood. The Palestinian Authority, which governs parts of the Israeli-occupied West Bank, has long relied on these tax funds, which Israel collects on its behalf, to maintain essential services and support the Palestinian people. The withholding of these funds, especially in the context of the current conflict, exacerbates the already dire economic situation in the Palestinian territories.
Smotrich’s decision comes amid accusations that the Palestinian Authority uses the funds to support families of Palestinians killed or imprisoned by Israel, which Israel views as an endorsement of violence. However, the PA has consistently denied these claims, arguing that the financial support is a necessary welfare measure for families who have lost their primary breadwinners.
The finance ministry’s statement aligns with Smotrich’s broader agenda of expanding Israeli settlements in the West Bank and preventing the establishment of a Palestinian state. On social media, Smotrich reiterated his commitment to maintaining complete Israeli control over the region, a stance that has drawn widespread condemnation from Palestinian leaders and human rights organizations.
Since the outbreak of the current conflict in Gaza following Hamas’s October 7 attack, Israel has imposed various economic sanctions on the Palestinian Authority, further straining the already fragile relationship between the two entities. The latest seizure of funds is likely to intensify the humanitarian crisis in the Palestinian territories and hinder any potential diplomatic efforts to de-escalate the situation.
The Palestinian Authority has yet to respond officially to the seizure, but the move is expected to deepen the economic hardships faced by Palestinians and fuel further resentment against the Israeli government’s policies in the occupied territories.
