Smotrich's comments on the cuts to youth movements/Knesset channel
The political-security cabinet decided last night (Thursday) to increase by 21 million shekels the amount that Israel will deduct from the Palestinian Authority's tax funds in the coming year against the background of the payments that the authority transfers to the families of terrorists, according to three sources who participated in the cabinet meeting.
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An Israeli official said that following the decision, Finance Minister Smotrich will lift the freeze on all funds that Israel is supposed to transfer to the Palestinian Authority and that have not been set aside or frozen - including the Palestinian tax money collected during the month of January - and will also approve the transfer of some of the Palestinian tax money that was set aside for custody in Norway.
However, increasing the amount of the offset will further exacerbate the economic crisis in the Palestinian Authority, which is having great difficulty paying salaries and is in danger of bankruptcy and collapse.
The security system warns that the economic crisis in the PA may lead to a security escalation in the West Bank as well.
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During yesterday's cabinet meeting, the Ministry of Defense presented the data regarding the funds that the Palestinian Authority transferred to the families of terrorists during the year 2023. According to Israeli law, the government is obligated to deduct the relative part of this amount from the amount of tax money that it transfers to the Palestinian Authority every month.
Last week, when the issue was supposed to be discussed in the cabinet for the first time, Finance Minister Smotrich claimed that the Ministry of Defense's figures are lower than the amount that the Authority actually transfers to the families of terrorists.
Smotrich announced that he will not transfer to the Palestinian Authority the tax money that Israel collected for it during the month of January.
Smotrich not only threatened but delayed the transfer of funds for more than three weeks - something that further exacerbated the economic crisis in the Palestinian Authority.
Smotrich's pressure worked.
At yesterday's cabinet meeting, the Ministry of Defense informed that following Smotrich's claims, the amount of the offset was updated from NIS 610 million to NIS 631 million.
The amount will be offset in the coming year every month in 12 installments of approximately NIS 52 million.
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Bezalel Smotrich
the Palestinian Authority