Israel has announced plans to use withheld Palestinian tax revenues to pay off a $543 million debt owed by the Palestinian Authority to the state-owned Israel Electric Corporation, IEC.
The announcement was made by Finance Minister Bezalel Smotrich, marking a significant development in the long-standing financial arrangements between the two sides. Under an established agreement, Israel collects taxes on goods entering the occupied West Bank on behalf of the Palestinian Authority and transfers the funds to Ramallah.
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However, since the escalation of tension following the attacks of October 7, 2023. Mr. Smotrich has frozen approximately $217 million intended for administrative expenses in Gaza. These funds are currently held in Norway, further complicating the financial dynamics between Israel and the Palestinian Authority.
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