Israel releases $115 million in withheld Palestinian taxes, PM Mustafa says

Palestinian Prime Minister Mohammed Mustafa announced on Wednesday that Israel has released around $115 million in tax revenue that it had withheld since last October.

The move follows government contacts and international pressure on Israel, Mustafa said, with the Israeli finance ministry finally transferring 435 million shekels ($115 million) of clearance funds for April and May.

Israel has doubled its tax deductions since the war on Gaza, reaching an average of 480 million shekels ($130 million) per month, The New Arab's Arabic edition Al-Araby Al-Jadeed reported.

Mustafa stressed the government's efforts to reach financial stability in coordination with Arab and international parties and also highlighting work to recover over six billion shekels ($1.6 billion) from Israel to fulfil obligations to employees, suppliers, and service providers.

The funds will be provided in instalments, supporting the budget and financing development projects in the occupied West Bank.

Clearance funds are taxes collected by Israeli authorities on imports brought into Palestine through Israel with the Israelis taking a small commission.

The Palestinian Authority (PA), which has some power in parts of the occupied West Bank, has been suffering a financial crisis since Israel began withholding tax revenues following the 7 October Hamas attack on Israel.

Israel has also intensified its attacks on the West Bank since then, killing hundreds of people and detaining thousands more, while waging an indiscriminate war on the Gaza Strip.

Mustafa said there has been a positive response from some international parties to grant financial aid to the Palestinian Authority.

The board of directors of the World Bank recently decided to increase the annual grant provided to Palestine from around $70 million to $300 million.

The PA's financial woes come as Israel continues to wage a brutal war on the Gaza Strip, which has so far killed more than 37,953 people, according to Gaza's health ministry.

Israeli forces have attacked ambulances, hospitals, and residential buildings, leaving infrastructure devastated.