Israel’s cabinet has approved a new plan for frozen tax funds that were originally intended for the Hamas-run Gaza Strip. Under the current arrangement, Israel’s finance ministry collects taxes on behalf of the Palestinians and transfers the funds to the Western-backed Palestinian Authority (PA). However, there have been ongoing disputes over this process, with Israel insisting that the money does not end up in the hands of Hamas, which is considered a terrorist group by many countries.
Hamas took control of Gaza in 2007, after a brief civil war, following Israel’s withdrawal of settlers and military forces. Despite this change in leadership, many PA public sector employees in Gaza have still been paid with tax revenues transferred from Israel.
The recent decision by the Israeli cabinet means that the frozen tax funds will now be held by Norway instead of being transferred directly to the PA. Prime Minister Benjamin Netanyahu stated that both Norway and the United States support this plan and will ensure its implementation.
Netanyahu’s office clarified that the money will not be transferred under any circumstances without the approval of the Israeli finance minister, and it will not go through a third party.
The Palestine Liberation Organization (PLO) has expressed its opposition to this decision, stating that they want the funds in full and will not accept any conditions that prevent them from paying their staff, including those in Gaza.
Israeli Finance Minister Bezalel Smotrich, who leads a far-right, pro-settlement party, confirmed that under the new arrangement, Norway will hold the funds and ensure that none of it goes to Gaza. Smotrich has long been against transferring funds to the PA.
Overall, this decision reflects the ongoing tensions between Israel and Hamas, as both sides continue to grapple with the issue of tax funds and how they are allocated in the region.
