Rawhi Fattouh, a senior official of the Palestinian National Council, has condemned the Israeli parliament's (Knesset) preliminary approval of a bill that mandates new deductions from tax revenues collected on behalf of Palestine.
According to the Operative Information Center-OMM, Fattouh, in a statement released by the official WAFA agency, characterized the move as "systemic financial piracy."
The Palestinian official emphasized that these funds are not Israeli aid, but rather tax revenues rightfully belonging to the Palestinian people. Reports indicate that the withholding of approximately 14 billion shekels, with a portion potentially directed toward financing Jewish settlements, is viewed as a violation of international law and existing bilateral agreements.
Fattouh described Israel's policy as "financial blackmail" and "collective punishment" aimed at weakening the Palestinian leadership and crippling the national economy. He has called upon the United Nations and international financial institutions to intervene in the matter.
According to the Israeli publication Haaretz, there are plans to utilize the frozen funds to provide compensation to Israelis affected by the conflict in Gaza.
It should be noted that under the 1994 Paris Economic Protocol, Israel collects customs duties on goods entering Palestinian territories and transfers them monthly to the Palestinian Ministry of Finance. These funds constitute approximately 56 percent of the Palestinian government's budget revenues. Since 2019, Israel has frequently implemented deductions from these transfers citing various reasons, a practice that remains a significant point of contention in the region's economic and political landscape.
