Copenhagen: Norway says it will transfer tax funds to the Palestinian Authority that have been frozen for months because of a dispute with Israel.
Under interim peace agreements dating back to the early 1990s, Israel collects taxes and customs on behalf of the PA, which administers parts of the occupied West Bank and also helps pay for public services in Gaza.
After Hamas’ October 7 attack triggered the war in Gaza, Israel reduced the transfers by the amount that is spent on the territory. The PA refused to accept the partial transfers, even though it relies on the taxes to cover most of its budget.
Norway said it will transfer the funds earmarked for the West Bank and hold those destined for Gaza.
“The temporary scheme will play a crucial role in preventing the Palestinian Authority from collapsing financially,” it said in a statement Sunday. The transfer will allow the PA to pay salaries to teachers, health workers and other public employees.
“Ensuring that the Palestinian Authority does not collapse and can
provide essential services to the population is vital to safeguarding the very existence of the Authority, promoting a political process and realising a future two-state solution,” Norwegian Foreign Minister Espen
Barth Eide said.