Israel offers economic aid to stop Palestinian Authority collapsing

Middle East Monitor  /  October 2, 2023

The Israeli occupation government has offered economic aid to the Palestinian Authority (PA) to ease the financial crisis it is facing and enable it to crackdown on the Palestinian resistance.

According to Israel Hayom, Tel Aviv recently slashed the gasoline tax it was collecting from the PA by 50 per cent, reducing it to 1.5 per cent instead of three per cent as stipulated by the Paris Economic Protocol signed in 1994.

The Israeli daily said the measure will save the PA some 80 million shekels ($20 million) annually, adding that other measures taken will help the Palestinian government to  the tune of some 270 million shekels ($70 million) this year.

This includes more transfers of taxes collected on behalf of the PA.

This comes as the US has warned Israel that the Palestinian Authority is on  the brink of collapse and more needs to be done to support it.