Israel stops transfer of PA tax revenues to Norway over Palestine recognition

Israel has stopped transferring the tax revenues it collects on behalf of the Palestinian Authority to Norway as a “punishment” for Oslo’s unilateral recognition of the Palestinian state as well as its anti-Gaza war position. The funds in question are the Gaza share of the tax revenues which Israel transfers to the PA in accordance with the Oslo Accords.

In November last year, Israeli Finance Minister Bezalel Smotrich refused to transfer Gaza’s share, while the Palestinian Authority in Ramallah refused to accept the revenues allocated only to the occupied West Bank. The Israeli political-security cabinet then approved a deal in January by which Israel transferred Gaza’s share of the revenue to a Norwegian-based trust account.

READ: Israel withholds $26m tax revenue from PA to ‘compensate Israelis’

Yesterday, extreme far-right Smotrich announced that Israel will not transfer Gaza’s share to the Palestinian Authority or Norway.

According to Ynet, Norway is currently holding around a billion shekels ($260 million) in tax revenues for the PA. After Oslo recognised the Palestinian state, Smotrich demanded that it should return the money.

Ynet said that the Israeli government considered the decision to be a “punitive measure” against Norway, due to its opposition to Israel’s war on Gaza, and Oslo’s failure to object to the International Criminal Court (ICC) arrest warrants against Israeli Prime Minister Benjamin Netanyahu and Defence Minister Yoav Gallant, for alleged war crimes and crimes against humanity in the Gaza Strip.

In an opinion letter to the ICC, Norway said that the Oslo Accords have nothing to do with the decision regarding the ICC’s jurisdiction to issue international arrest warrants against Netanyahu and Gallant. Norway was the sponsor of the Oslo Accords, and its position before the ICC is of great importance.

Ynet reported that Israel is discussing, through the United States, an agreement with a third country to replace Norway. Israeli Strategic Affairs Minister Ron Dermer has apparently visited Switzerland recently and held talks on the subject, so that the funds would be transferred there, but Dermer’s office denied this.

READ: Blocking aid to Gaza’ justified and moral’ even if 2m civilians starve, Israel minister says