عربي English Türkçe اردو فارسى
Logo
Latest News
Arab World

Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
TT
TT

Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.

Most Viewed

 
 
Arab World

UN Force in Lebanon Says Peacekeepers Fired Upon ‘Likely by Non-State Armed Groups’

United Nations peacekeepers with the UN Interim Force in Lebanon (UNIFIL) drive past a destroyed healthcare center building in the aftermath of an Israeli strike in the southern Lebanese town of Burj Qalawiya on March 14, 2026. (AFP)
United Nations peacekeepers with the UN Interim Force in Lebanon (UNIFIL) drive past a destroyed healthcare center building in the aftermath of an Israeli strike in the southern Lebanese town of Burj Qalawiya on March 14, 2026. (AFP)
TT
TT

UN Force in Lebanon Says Peacekeepers Fired Upon ‘Likely by Non-State Armed Groups’

United Nations peacekeepers with the UN Interim Force in Lebanon (UNIFIL) drive past a destroyed healthcare center building in the aftermath of an Israeli strike in the southern Lebanese town of Burj Qalawiya on March 14, 2026. (AFP)
United Nations peacekeepers with the UN Interim Force in Lebanon (UNIFIL) drive past a destroyed healthcare center building in the aftermath of an Israeli strike in the southern Lebanese town of Burj Qalawiya on March 14, 2026. (AFP)

The United Nations Interim Force in Lebanon said its peacekeepers were fired upon three times on Sunday, "likely by non-state armed groups" in the country's south.

The incident came two days after a different UN position was hit by fire that official Lebanese media blamed on Israel, with UNIFIL saying it was investigating.

"Today, UNIFIL peacekeepers were fired upon, likely by non-state armed groups, on three separate occasions while conducting patrols around their bases" in south Lebanon, the force said in a statement.

In one of the locations, the fire struck "as close as five meters from the peacekeepers", it added.

"Two patrols returned fire in self-defense and after brief exchanges, the patrols resumed their planned activities. No peacekeeper was injured," the statement said.

"We strongly remind all actors of their obligations under international law to ensure the safety and security of UN personnel at all times."

Lebanon was drawn into the broader Middle East war on March 2, when the Tehran-backed group Hezbollah attacked Israel in retaliation for the killing of Iranian supreme leader Ali Khamenei in US-Israeli strikes.

Israel has since launched waves of air strikes on its northern neighbor and deployed troop into border areas, while Hezbollah has launched rockets and missiles towards Israeli territory and troops.

Lebanese state media said that Israeli fire hit a UNIFIL base in southern Lebanon on Friday.

UNIFIL spokesperson Kandice Ardiel said the position was hit "likely by heavy machine gun fire", without identifying the source, and said an investigation had been launched into the incident, which left one peacekeeper lightly wounded.

Earlier this month, three peacekeepers serving with a Ghanaian contingent were wounded in south Lebanon, with Lebanese President Joseph Aoun accusing Israel of being responsible and UNIFIL saying it would investigate.

On Saturday, during a visit to Beirut, UN chief Antonio Guterres said attacks against peacekeepers and their positions were "completely unacceptable and... may constitute war crimes".

UNIFIL has acted as a buffer between Israel and Lebanon since 1978. Its mission concludes at the end of this year.

Arab World

WHO Releases $2 Million in Emergency Funds to Lebanon, Iraq and Syria

A child poses for a photo, at a school hosting displaced people, following an escalation between Hezbollah and Israel, amid the US-Israeli conflict with Iran, in Lebaa, Lebanon, March 15, 2026. (Reuters)
A child poses for a photo, at a school hosting displaced people, following an escalation between Hezbollah and Israel, amid the US-Israeli conflict with Iran, in Lebaa, Lebanon, March 15, 2026. (Reuters)
TT
TT

WHO Releases $2 Million in Emergency Funds to Lebanon, Iraq and Syria

A child poses for a photo, at a school hosting displaced people, following an escalation between Hezbollah and Israel, amid the US-Israeli conflict with Iran, in Lebaa, Lebanon, March 15, 2026. (Reuters)
A child poses for a photo, at a school hosting displaced people, following an escalation between Hezbollah and Israel, amid the US-Israeli conflict with Iran, in Lebaa, Lebanon, March 15, 2026. (Reuters)

The World ‌Health Organization said on Sunday it had released $2 million from its Contingency Fund for Emergencies (CFE) to support the health response in Lebanon, Iraq and Syria amidst the ongoing crisis in the Middle East.

The conflict has triggered a large-scale population movement, the WHO ‌said last week, ‌estimating that more ‌than 100,000 ⁠people in Iran ⁠have relocated, and up to 700,000 people in Lebanon have been internally displaced.

$1 million has been allocated to Lebanon to strengthen the WHO's emergency coordination ⁠through the Public Health Emergency Operations ‌Center, scale ‌up trauma care, reinforce disease surveillance, ‌and procure and distribute essential ‌medicines and medical supplies, the agency said in a statement.

Iraq and Syria have each been allocated $500,000 to support emergency ‌coordination and mass-casualty management, procure and distribute essential medicines ⁠and ⁠supplies, provide health services for displaced populations, and strengthen disease surveillance and community outreach, it added.

"At a time when health services are already facing significant challenges, support is essential to sustain frontline health workers and maintain critical care services," Hanan Balkhy, WHO Regional Director for the Eastern Mediterranean said.

Arab World

In Heavy Rain, Lebanese Fleeing War Huddle Under Makeshift Shelters

A man secures a tent at sunset at a public space where people displaced by Israeli airstrikes have set up tents along the Beirut waterfront in Beirut, Lebanon, Sunday, March 15, 2026. (AP)
A man secures a tent at sunset at a public space where people displaced by Israeli airstrikes have set up tents along the Beirut waterfront in Beirut, Lebanon, Sunday, March 15, 2026. (AP)
TT
TT

In Heavy Rain, Lebanese Fleeing War Huddle Under Makeshift Shelters

A man secures a tent at sunset at a public space where people displaced by Israeli airstrikes have set up tents along the Beirut waterfront in Beirut, Lebanon, Sunday, March 15, 2026. (AP)
A man secures a tent at sunset at a public space where people displaced by Israeli airstrikes have set up tents along the Beirut waterfront in Beirut, Lebanon, Sunday, March 15, 2026. (AP)

Hussein Murtada and his ‌family are camping in the back of a small truck, a flimsy tarpaulin shielding them from a storm on Sunday, with no room left at shelters for displaced people in the southern Lebanese city of Sidon.

"We are putting tarp over it because we're soaked," said Murtada, using string to fasten the plastic sheet over the back of the truck parked on the seafront. Inside, an infant peered out, surrounded by pillows, blankets and other possessions.

"I asked here at the schools and they are full, they're all full," said Murtada, who fled the town of Hanawiya, some 12 km (8 miles) ‌from the ‌border with Israel, with his family of seven.

"What ‌should ⁠I ask for? ⁠I just want a shelter for me and the children," Murtada added.

More than 800,000 people, around 15% of Lebanon's population, have had to flee their homes since Israel began an offensive in the country after the Lebanese Hezbollah group opened fire at Israel in support of its ally Iran on March 2.

It has dragged Lebanon into the Middle East conflict just 15 months ⁠since the last Israel-Hezbollah war.

Only a fraction of ‌the displaced - some 132,000 according to Lebanese ‌authorities - are in collective shelters. The rest are scattered elsewhere, some with relatives, others ‌in half-finished buildings or host communities and many in the streets.

Mohammad Marie, ‌who fled the city of Nabatieh in southern Lebanon, has been sheltering under a tree on Beirut's seafront Corniche, protected by a plastic sheet before it was blown away.

"It might keep raining for a week, so where will I go? ‌I will stay here, what else can I do? I have no shelter except here, under this tree," ⁠Marie said, his ⁠clothes soaked through.

"I don't have a tent, I don't have anything, and my financial situation is very difficult. I have no money to rent a house," he said.

The United Nations launched a $308 million flash appeal on Friday to help Lebanon cope with the fallout of the war.

Israeli attacks have killed 850 people and wounded more than 2,100 others in Lebanon since March 2, including 107 children and 66 women, the Lebanese health ministry said on Sunday. Its toll does not say how many of the casualties were combatants.

Two Israeli soldiers have been killed in southern Lebanon, while no fatalities have been reported in Israel as a result of Hezbollah rocket and drone attacks since March 2.