Israeli Prime Minister Mohammed Mustafa announced that Israel has released $115 million in tax revenue previously withheld since last October. This decision follows international pressure and government contacts, with the Israeli finance ministry transferring 435 million shekels ($115 million) of clearance funds for April and May.
The move comes as Israel has doubled tax deductions since the Gaza war, averaging 480 million shekels ($130 million) per month. Mustafa emphasized efforts to achieve financial stability with the help of Arab and international parties, aiming to recover over six billion shekels ($1.6 billion) from Israel for obligations to employees, suppliers, and service providers.
The funds will be provided in instalments, supporting the budget and financing development projects in the occupied West Bank. The Palestinian Authority (PA) has faced a financial crisis due to Israel withholding tax revenues following the October Hamas attack.
International support is forthcoming, with the World Bank increasing annual aid to Palestine from $70 million to $300 million. The PA’s financial struggles persist alongside Israel’s ongoing devastating war on Gaza.