Following an agreement to release blocked tax payments, Israel has given the Palestinian Authority $114 million, and additional money is expected to arrive shortly, the Norwegian government announced on Thursday.
On February 18, Norway announced that it has consented to help transfer money that Israel had collected and designated for the Palestinian Authority (PA), giving the Western-backed organization much-needed revenue.
Join our WhatsApp Channel“This money is absolutely necessary to prevent the collapse of the Palestinian Authority, to ensure that the Palestinians receive vital services, and that teachers and health workers are paid,” Norwegian Prime Minister Jonas Gahr Stoere said.
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“The coming days” would see more transfers, he continued, but he did not say when or how much.
In the West Bank under Israeli occupation, the PA has limited autonomy over its own affairs.
Israel’s Finance Ministry collects taxes on behalf of the Palestinians and sends monthly payments to the PA in accordance with temporary peace agreements reached in the 1990s. However, after the attack on Israel on October 7 by Hamas from Gaza, a region governed by the Palestinian Islamist organization, a disagreement arose regarding payments.
In order to transmit the remaining taxes to the PA, Israel first takes a commission of 3% on items that are imported into the Palestinian territories through Israeli territory. Other than the Rafah crossing from Egypt into the Gaza Strip, Israel maintains sovereignty over the entirety of the Palestinian territories’ borders.
Norway acts as a middleman in the agreed-upon arrangement, retaining tax revenue equivalent to the amount that Israel believes would have gone to Gaza; the Nordic nation has stated that the PA would receive the remaining funding.
Monday saw Oslo also get the portion of funds it will hold for the PA. How much the share was worth was not disclosed in a statement released by the Norwegian government.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
