Photo by Majdi Fathi/TPS on 8 September, 2020

Israel to Deduct Money Earmarked for Gaza From Tax Transfers to Palestinian Authority

Public By Pesach Benson • 3 November, 2023

Jerusalem, 3 November, 2023 (TPS) -- Israel’s security cabinet decided on Thursday night to deduct money earmarked for Gaza from tax revenues it transfers to the Palestinian Authority. This is in addition to Israel’s policy of deducting an equivalent amount that Ramallah spends on stipends for imprisoned terrorists and their families.

“Israel is severing all contact with Gaza. There will be no more Palestinian workers from Gaza. Those workers from Gaza who were in Israel on the day of the outbreak of the war will be returned to Gaza,” the security cabinet said in a statement announcing the move.

Reports estimate that 30% of the PA budget is spent in Gaza, mostly on welfare assistance and medicine.

The most recent revenue transfer to the PA was supposed to be on Oct. 31.

Till now, Ramallah has refused as a matter of principle to accept reduced revenue transfers from Israel. The Israeli deductions offset the PA’s estimated budget for the stipends, which Israelis refer to as “pay for slay.”

Under P.A. law, every Palestinian terrorist who is killed attacking Israelis is classified as a “martyr” and the family is rewarded with a 6,000 shekel ($1,511) grant and a monthly stipend of 1,400 shekel ($353) for life.

Terrorists in Israeli prisons receive monthly stipends starting at 1,400 shekels per month. The payouts eventually increase to 12,000 shekels ($2,990) per month.

Itamar Marcus, director of Palestinian Media Watch, told the Tazpit Press Service in October that the Palestinian Authority always finds ways to deliver the payments to Gaza, despite the fact that Gaza is at war and Hamas seeks to overthrow the PA.

It isn’t clear how many Gazans with work permits are currently in Israel, nor is it clear how Israel will return them to the Strip. Israel closed its border crossings on Oct. 7 following Hamas’s surprise attack on southern Israeli communities.