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PA suffering "most difficult economic situation in years" due to aid cuts and "unfair" Israeli anti-terror deductions

Headline: “Shtayyeh discussed the agenda of the donors’ meeting with the Norwegian envoy and met with the British consul”


“[PA] Prime Minister Dr. Muhammad Shtayyeh received Special Norwegian Envoy to the Peace Process Jon Hansen[-Bauer] yesterday [Nov. 11, 2021]… and reviewed the difficult economic situation that the PA is undergoing, which is the most difficult situation that there has been in years. This is a result of the lack of external aid and the increase in unfair deductions by Israel from the tax money (refers to Israel’s Anti “Pay-for-Slay” Law to deduct PA terror salaries; see note below -Ed.), which will impact the [PA] government’s ability to uphold all of its financial obligations.”


Israel's Anti "Pay-for-Slay" Law - Israeli law stating that the PA payments to terrorists and the families of dead terrorists is a financial incentive to terror. The law instructs the state to deduct and freeze the amount of money the PA pays in salaries to imprisoned terrorists and families of "Martyrs" from the tax money Israel collects for the PA. Should the PA stop these payments for a full year, the Israeli government would have the option of giving all or part of the frozen money to the PA. The law was enacted by the Israeli Parliament on July 2, 2018. During the parliamentary vote, the law's sponsor Avi Dichter said: “The Foreign Affairs and Defense Committee received much help in its deliberations... from Palestinian Media Watch who provided us with authentic data that enabled productive and professional deliberations, nuances that are very difficult to achieve without precise data.” [Israeli Parliament website, July 2, 2018] In accordance with the law, as of September 2021 Israel’s Security Cabinet had ordered the freeze of 1.857 billion shekels ($580.15 million) - the sum equivalent to the PA payments to terrorists in 2018, 2019, and 2020.