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PA claims Israeli law deducting PA terror salaries from tax revenue "constitutes a third of the PA government’s deficit"

Headline: “Bishara: The illegal Israeli deductions from the tax money constitute a third of the [PA] government’s annual deficit”




“[PA] Minister of Finance Shukri Bishara said that the illegal Israeli deductions from the tax money (refers to Israel’s Anti “Pay-for-Slay” Law to deduct PA terror salaries; see note below -Ed.) constitute a third of the [PA] government’s annual deficit, as the cumulative amount that has been deducted since 2019 and until today exceeds $500 million.


While presenting a financial report to the donors and states participating in the donors’ conference being held in Brussels, the capital of Belgium, Bishara added that the foot-dragging by the Israeli side on everything concerning arranging and restoring the Palestinian rights will cause an imbalance in the PA’s general financial situation…


Since July 2021, the Israeli government has doubled the amount that it is deducting from the tax money from 50 million [Israeli] shekels a month to 100 million shekels…


Bishara said: ‘The considerable revenue collection in 2021 gave momentum in the first quarter of the year. The total revenue stood at $1.36 billion, an increase of 28% on an annual basis.’


He added: ‘The deficit in the Palestinian budget up to the end of the current year, after the aid, is estimated at $564 million as opposed to $757 million in 2021. This constitutes a decrease at a rate of 25% and less than 4% of the GDP.’ …


The 2022 budget included a series of reforms, which the government began to decrease the deficit. Their essence was a reform of the salary expenses, which consume 100% of the public sector revenue.


The PA currently pays salaries and salary-like payments (refers to pension payments, social welfare payments, and terror salaries -Ed.) to 245,000 beneficiaries. At the end of 2021, the expenses stood at approximately $300 million a month, as opposed to a net revenue (after the deductions being implemented by the Israeli government) [parentheses in source] of $330 million.”





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.