Palestinian FM warns of PA collapse over Israel’s withholding of tax revenues

Palestinian Foreign Minister Varsine Agapekian Shahin warned on Sunday that the continued withholding of tax revenues by Israel could lead to the collapse of the Palestinian Authority (PA), disrupting essential public services and fuelling instability.

Speaking during a meeting with Cypriot Foreign Minister Constantinos Kombos on the sidelines of the Manama Dialogue 2025 conference in Bahrain, Shahin said that Israel’s actions threaten to paralyze the PA’s ability to function.

The withheld tax revenues are taxes collected by Israel on behalf of the Palestinian Authority on goods imported into the occupied territories. Since 2019, Israel has deducted portions of these funds under various pretexts, amounting to roughly $3 billion, according to Palestinian estimates.

Shahin warned that the ongoing withholding “will lead to the disruption of health, education, and security services, and to widespread chaos, ultimately resulting in the collapse of the Authority.” She urged the international community to take “concrete and immediate steps” to support the PA and prevent further deterioration in the occupied West Bank and Gaza Strip.

She added that the Palestinian cause stands “at a critical juncture,” describing Israel’s actions as a continuation of “more than seven decades of occupation and oppression.” Shahin said Israel’s “impunity” has emboldened it to persist in what she called “crimes against the Palestinian people.”

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