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The Norwegian government announced on Sunday that it had agreed to facilitate the transfer of frozen tax funds collected by Israel for the Palestinian Authority (PA), providing critical funding to Western-backed organizations. .
Under interim peace agreements reached in the 1990s, the Israeli Treasury collects taxes on behalf of the Palestinians and remits them to the PA each month, but a dispute over payments erupted following the October 7 attack by Hamas. It broke out.
Norway says this interim solution will restart payments, prevent the PA from going into financial ruin, and allow it to pay salaries and provide essential services such as schools and health care.
Norway’s Prime Minister Jonas Gaar Stoere said: “This is crucial for promoting stability in the region and for the Palestinian Authority to have legitimacy among its people.”
Under the settlement agreed with Israeli and Palestinian officials, Norway will act as an intermediary for revenue that Israel has withheld since October 7.
Norway said: “The Palestinian Authority is open to receiving other funds.”
A Norwegian Foreign Ministry spokesperson said the portion of the revenue that Norway retains is equal to the portion that Israel estimates for Gaza.
Access to revenue is key to the survival of the PA, which exercises limited autonomy in the Israeli-occupied West Bank.
Gaza Strip Surveillance
Several Western countries, including the United States, also want the PA to play a role in administering the Gaza Strip if the war ends.
On November 2, Israel announced that it would proceed with the transfer of tax revenue to the PA in the West Bank, while withholding funds from Hamas-controlled Gaza. In the Gaza Strip, the PA helps pay for public sector wages, health care, and social assistance programs. .
But on November 6, the PA said it wanted full payment and would not accept conditions that would prevent staff from being paid. It is estimated that around 30% of the budget is spent on Gaza.
On January 21, Israeli officials announced that the Israeli cabinet had approved a plan to freeze taxes allocated to the Gaza Strip and keep it in Norway rather than transfer it to the PA.
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