Israel has recently slashed the gasoline tax it had been collecting from the Palestinian Authority by 50% as well as taken other measures to ease the financial situation in Ramallah, Israel Hayom has learned. The 1994 economic accords between Israel and the Palestinians stipulate a 3% rate but Israel has recently decided to collect only half the amount, at 1.5%, as shown in a recent document signed by the IDF Coordinator for Government Activities in the Territories office several days ago. This will save some NIS 80 million ($20 million) for the PA on an annual basis.
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Other measures that Israel has taken to help the Palestinians financially since the start of 2023 add up to some NIS 270 million ($70 million). This includes more transfers of taxes collected on behalf of the PA, amounting to a major upgrade compared to about half a million shekels only three years ago. This, despite many of the goods ostensibly being sent to the PA never making it there because of a fraudulent ploy by importers.
Video: Troops arrest terrorist behind Mount Hebron attack / Credit: Israel Police
Other financial measures have totaled some NIS 350 million ($90 million) since the new government has been sworn in.
The Biden administration has been pressuring Israel to increase the aid to the Palestinians' economy, saying that the PA is on the verge of collapse. But the Israeli willingness to play along despite PA leader Mahmoud Abbas continuing to pay terrorists has outraged some US congress members, with some saying that the president's increase of aid to the Palestinians runs against US law (and specifically the Taylor Force Act, which prohibits funding to the Palestinians so long as the "pay-for-slay" policy continues).
Israel Hayom has also learned that as part of the efforts to bolster normalization with Saudi Arabia, the US has placed immense pressure on Israel to make it take "steps toward bolstering the PA," which include letting Riyadh send funds to Ramallah. However, there are ways being explored to ensure these do not make it to terrorists' hands.
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