Smotrich tightens financial noose on Palestinian Authority

In a new financial clampdown, ‘Israeli’ Finance Minister Bezalel Smotrich on Sunday decided to increase deductions from Palestinian tax revenues by hundreds of millions of shekels annually, ‘Israeli’ Army Radio reported. 

Smotrich instructed an electricity company supplying energy to the Palestinian Authority (PA) to adopt advanced technological methods to measure the precise amount of power delivered to PA areas.

This replaces previous estimates based on “security considerations,” which had kept monthly bills significantly lower.

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- Surge in monthly deductions -

The report noted that 'Israel' previously collected around 35 million shekels per month for electricity, while the amount now ranges between 50 and 70 million shekels monthly.

This increase will result in additional deductions totaling hundreds of millions of shekels over the course of a year, further straining the PA’s already weak finances. 

- Strategy to weaken the authority -

The radio report added that this measure is part of Smotrich’s declared plan to weaken the Palestinian Authority and push it toward collapse.

These new deductions are in addition to existing withheld amounts, estimated at around one billion shekels annually, equivalent to nearly 65% of the PA’s total budget.

If 'Israel' decides in the future to release the frozen tax funds, the PA would receive much less than previously, threatening its ability to meet basic obligations.