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Gaza war: Israel's finance minister orders seizure of $26 million in Palestinian tax funds

Gaza war: Israel's finance minister orders seizure of $26 million in Palestinian tax funds

File photo of Israeli Finance Minister Bezalel Smotrich.

Israel's Finance MinisterBezalel Smotrich on Sunday (Aug 4) ordered the seizure of $26 million (100 million shekels) of tax funds intended for the Palestinian Authority, saying it would be used to pay for the Israeli victims of terrorism. The Palestinian Authority governs parts of the Israeli-occupied West Bank.

In a statement, the finance ministry said that the seizure of funds was part of the measures to combat terrorism, the news agency AFP reported.

Quoting Finance Minister Smotrich, the statement accused the Palestinian Authority of diverting funds to the families of the terrorists. The statement noted that it was the fifth time that the finance ministry withheld funds, which Israel collects on behalf of the Palestinian authority.

'Working on ground to remove threat'

In a post on X, Smotrich said on Monday that the withholding of the Palestinian funds was part of a broader strategy to prevent the creation of a Palestinian state to ensure security for Israelis, alongside increased settlement in the West Bank.

"We are working on the ground to remove this threat (of a Palestinian state) ... by strengthening settlement through construction, ... fighting the terror funds of the Palestinian Authority and its leaders, and maintaining complete Israeli control over the area," the finance minister added.

Israeli criticism of the Palestinian Authority

Israeli politicians have regularly criticised the Palestinian Authority for granting financial supportto the families of Palestinians killed or jailed for acts of violence against Israel.

Also read | Gaza war: Security chiefs, negotiators, US all blaming Netanyahu for tanking hostage talks

Since the Israel-Hamas war began on October 7 last year, Israel has imposed economic curbs on the Palestinian Authority, often withholding tax revenues it collects on its behalf.

(With inputs from agencies)