Israel's defence and finance ministers clash over Palestinian tax payout

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Israel's defence and finance ministers clashed on Wednesday over whether some West Bank tax revenues should be transferred to the Palestinian Authority, underlining the tensions straining the government as Israeli forces push on with the war in Gaza.

Defence Minister Yoav Gallant called for tax revenues collected by Israel on behalf of the Palestinians in parts of the West Bank under direct Israeli control, to be disbursed without delay.

"The funds should be transferred immediately so that these may be used by the operational mechanism of the Palestinian Authority and by the sectors of the Palestinian Authority that are dealing with the prevention of terrorism," he said. Under interim peace accords, Israel's finance ministry collects tax on behalf of the Palestinians and makes monthly transfers to the PA, which has limited self rule in the occupied West Bank, but there have been constant wrangles over the arrangement.

Smotrich had already said he would oppose a payout of the funds, which go to pay for public sector salaries and other government expenditure, accusing Palestinians in the West Bank of supporting the deadly Hamas attack on Israel on Oct. 7.

 

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