Israel seizes $26 Million in Palestinian tax funds for “Terrorism” support

JERUSALEM: Israel’s far-right Finance Minister, Bezalel Smotrich, has ordered the confiscation of 100 million shekels ($26 million) of tax funds meant for the Palestinian Authority (PA). The funds will be redirected to support Israeli victims of “terrorism,” according to Smotrich.

This action marks the latest in a series of fund withholdings from the PA, which governs parts of the Israeli-occupied West Bank, amid ongoing conflict between Israel and Hamas since October.

The Israeli Finance Ministry stated that the funds were seized as part of efforts to combat terrorism. Smotrich accused the PA of diverting these funds to “families of terrorists,” a claim he has made previously.

Israeli politicians frequently criticize the PA for financially supporting the families of Palestinians involved in violent acts against Israel. A 2004 law mandates that the PA ensure a “dignified life” for current and former Palestinian prisoners, protecting their economic rights and those of their families.

To Palestinians, these pensions are crucial for supporting families and represent resistance against Israeli occupation.

The Finance Ministry’s statement indicates that this is the fifth instance of funds being withheld. The PA, struggling financially amid the Gaza conflict, has not yet commented on the latest development.

Smotrich, on the social media platform X, suggested that the fund withholding is part of a larger strategy to prevent the establishment of a Palestinian state and to enhance Israeli security through increased West Bank settlement.

A diplomat in Jerusalem described this approach as a new tactic aimed at sanctioning and potentially destabilizing the PA, calling it a dangerous strategy pushing the PA toward collapse. Israeli settlements in the West Bank are deemed illegal under international law, though the U.S., Israel’s key ally, supports moves towards a Palestinian state.