Israeli Knesset approves bill expanding deductions from Palestinian Authority funds

The Israeli Knesset on Monday approved, in its second and third readings, a bill expanding the mechanisms for deducting money from funds transferred to the Palestinian Authority.

The law allows Israel to make additional deductions from Palestinian tax clearance revenues to cover compensation and benefits paid by Israeli institutions as a result of Palestinian operations.

According to the text of the law, introduced by Likud Knesset member Avichai Boaron, the new deductions will include compensation paid by Israel to people it describes as victims of Palestinian operations, as well as National Insurance payments to those injured and to the families of those killed. The deductions will also cover compensation for property damage paid through Israel’s Compensation Fund and Property Tax Fund, the Sanad news agency reported.

Under the law, the finance minister must submit an annual report to the security cabinet detailing the value of payments and compensation linked to such operations. The cabinet will then determine the amount to be deducted from the funds that Israel collects on behalf of the Palestinian Authority during the following year.

The law also states that the deducted funds will first be used to cover compensation payments and debts owed to affected individuals. Any remaining surplus will be transferred to the Israeli state treasury. 

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