Published On 4/27/2026
Today, Monday, Israel decided to withhold Palestinian clearance funds again and deduct the bulk of them, at a time when the Palestinian Authority is suffering from a stifling financial crisis.
A statement issued by the office of Israeli Finance Minister Bezalel Smotrich claimed that most of the tax revenues collected by Israel on behalf of the Palestinian Authority this month were deducted to pay overdue bills, as he put it.
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Clearing is money imposed on goods imported to the Palestinian side, whether from Israel or through the border crossings controlled by Tel Aviv, and the latter collects it for the benefit of the Palestinian Authority.
According to the data, the total revenues collected this month amounted to 740 million shekels (about 248 million dollars), and about 590 million shekels (about 197.7 million dollars) were deducted to cover debts owed by the Palestinian Authority to the Israeli electricity and water companies and environmental bodies, while the remaining balance was frozen and not transferred.
This step comes as part of an ongoing policy since 2019, as Israel decided to deduct sums from the Palestinian clearance funds under various pretexts, which plunged the Authority into a financial crisis that made it unable to pay its employees’ salaries in full, with debts accumulating on the private sector and local banks.
Last February, Palestinian Finance Minister Estephan Salameh said that Israel is withholding the equivalent of $4.4 billion (about 13 billion shekels) of Palestinian clearance funds.
Another occupation
Israeli media reported that this step is “a continuation of Smotrich’s tough political and economic stance towards the Palestinian Authority,” and that “Israel will not transfer the tax revenues it collected this month on behalf of the Palestinian Authority to the Ramallah government.”
The statement attributed to Smotrich added, “From a total of 740 million shekels ($248 million) collected this month, about 590 million shekels (about 197.7 million dollars) were deducted to cover debts owed by the Palestinian Authority to the Israeli electricity and water companies and environmental bodies.”
He explained that “the remaining balance was frozen and not transferred,” as part of a policy he has been leading since last year, in protest against the steps of the Palestinian Authority in international institutions, including the International Criminal Court.
The Israeli decision comes at a time when the Palestinian government says it is suffering from a stifling financial crisis.
Palestinian Prime Minister Muhammad Mustafa said yesterday, Sunday, that the Israeli occupation’s siege is not limited to the Gaza Strip, but rather is working to strangle the West Bank, including Jerusalem, through political, security and colonial tools, in addition to the continued deduction of Palestinian clearance funds.
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The Palestinian official added, “These deductions escalated during the last 12 months, as Israel did not transfer any of the tax and customs revenues to the treasury of the State of Palestine.”
The Palestinian Prime Minister considered that “these measures represent another occupation,” stressing that the government is working on two paths: “pressure on Israel to release the withheld funds, and provide what is possible to thwart the occupation’s plans and attempts aimed at bringing our people to their knees.”
