Israel's Smotrich vows not to release Palestinian Authority tax revenue

Israel's far-right Finance Minister Bezalel Smortich has said that he will not release tax revenue destined for the Palestinian Authority (PA) currently held by Israel.

The statement, issued on X, was made following reports in Axios that US President Joe Biden had told Israeli Prime Minister Benjamin Netanyahu that he should release the withheld funds in what was described as a "frustrating" call.

Although he called the US Israel's "best ally in the world", Smotrich said that "we will never put our destiny in the hands of foreigners, and as long as I am Finance Minister, not a single Shekel will go to the Nazi terrorists in Gaza".

"This is not an extreme position. This is a life-saving and reality-based position," he added, as far-right members of Israel's cabinet continue to exert pressure on Netanyahu's decision making in the war.

Since 7 October, Israel has partly withheld tax revenue that it collects on behalf of the PA. This has raised fears that the PA, which is currently in a financial crisis, will collapse. The PA currently governs the Israeli-occupied West Bank.

The Biden Administration, which sees the PA as a key player in the post-war governance of Gaza, has attempted to pressure Netanyahu into releasing the funds to Norway for safekeeping. The PA has accepted this plan, agreeing to receive non-withheld tax revenue which it has refused over the issue.

According to Axios, Netanyahu rejected the proposal, resulting in Biden demanding that Netanyahu challenge far-right coalition members like Smotrich. Biden reportedly told Netanyahu "this conversation is over", before immediately ending the call.

Further pressure has mounted on Netanyahu from far-right members of his government over a debate on the governance of post-war Gaza, with far-right National Security Minister Itamar Ben Gvir demanding that any discussion be a security cabinet matter rather than a war cabinet decision.

Israel's military operations in Gaza have killed 21,507 people, according to Gaza's health ministry, with an additional 55,915 people wounded. 

Since the outbreak of war on 7 October, Smotrich has said he would back expelling Gaza's 2.3 million residents into the Sinai desert, in a move that has been rejected by Israel's neighbours. Close to two million Gazans have been displaced by the war.