Israel will not transfer much-needed funds to the Palestinian Authority in the wake of the decision by three European countries to recognize a Palestinian state, the country’s finance minister said on Wednesday, as its foreign minister denounced the European moves as giving “a gold medal to Hamas terrorists.”
The decision by the finance minister, Bezalel Smotrich, a far-right leader who opposes Palestinian sovereignty, threatened to push the Palestinian government into a deeper fiscal crisis. He said in a statement that he had informed Prime Minister Benjamin Netanyahu that he would no longer send tax revenues to the authority, which administers parts of the Israeli-occupied West Bank in close cooperation with Israel.
Mr. Smotrich’s office signaled that the decision was at least partly a response to Spain, Norway and Ireland recognizing Palestinian statehood, and that the Palestinian leadership bore responsibility for campaigning for the move.
Yep. Reasoning out why its getting framed that way is an exercise I’ll leave up to the readers, but those same sources have confirmed the facts even if they are getting framed differently - the goods are taxed when they get imported into Israel, and the tax is paid by people in Israel. If those good are then exported from Israel to Gaza or the West Bank, then the governments of those places would be within their rights to tax it again. However, the 1994 deal kept that tax burden off the Palestinians while maintaining their access to Israeli logistics and infrastructure as opposed to importing goods from Egypt or Jordan, or shipping them into Gaza directly from the Mediterranean. The governments of Gaza and the West Bank became dependent on the free money, and that gave Israel leverage which it is now choosing to use.
Edit: Just to make sure I was doing my homework, I actually found a copy of the relevant agreement. Read Annex V point 1 (1st page) and Appendix V point 4 (2nd page). Both make it clear that Israel is collecting Palestinian taxes from Palestinians and on purchases made wholly in Palestine with a final destination inside Palestine. Given the very specific language of the agreement, I’m even more sure your assertion that it’s Israeli-sourced money is incorrect.
Your word alone is not enough, and in the absence of requested evidence I’m going to disregard it. I have found MANY sources going back years that state that Israel is collecting Palestinian taxes, as in money that Palestine would be collecting if it wasn’t occupied/was a self-governing nation. Israel also frequently withholds these taxes as a political bludgeon even though they are bound by their own signed agreements to pass that money along to Palestinian authorities. Israel even charges a 3% fee to do this for Palestine. I cannot find a single source that backs up your assertion that it’s actually Israel’s money transferred as an act of charity. Moreover, the idea that Israel is being unnecessarily kind clashes with decades of evidence about how Israel views, controls, and abuses Palestinians.