Israel Activates Economic Measures In Favor of Palestinian Authority

Palestinian Prime Minister Mohammad Shtayyeh unveils the cornerstone for the Palestine wheat silos project in the village of Burham. (Wafa)
Palestinian Prime Minister Mohammad Shtayyeh unveils the cornerstone for the Palestine wheat silos project in the village of Burham. (Wafa)
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Israel Activates Economic Measures In Favor of Palestinian Authority

Palestinian Prime Minister Mohammad Shtayyeh unveils the cornerstone for the Palestine wheat silos project in the village of Burham. (Wafa)
Palestinian Prime Minister Mohammad Shtayyeh unveils the cornerstone for the Palestine wheat silos project in the village of Burham. (Wafa)

The Israeli government began to offer a number of economic facilities to the Palestinian Authority, lately approved under heavy pressure from Washington.

Israeli newspaper Israel Hayom reported on Sunday that Israel has recently slashed the gasoline tax it had been collecting from the Palestinian Authority by 50%, and has taken other measures to ease the financial situation in Ramallah.

Israeli authorities decided to collect a 1.5% gasoline tax instead of 3% from the PA, a measure that will save the Authority some 80 million shekels ($20 million) on an annual basis, according to the newspaper.

In 2023, the Israeli cabinet had taken other steps to support the Palestinian Authority's economy. These efforts include increased tax payments in favor of the PA, which now average 730 million shekels per month, compared to around half a million three years ago.

Early this year, the cabinet had announced it approved lowering the so-called “blue tax” that it levies from the PA on fuel transfers from three percent to 1.5%; raising the percentage of revenues it transfers to Ramallah from the fees it collects from travelers at the Allenby border crossing between the West Bank and Jordan; and expanding the list of tax-free imports that it facilitates on the PA’s behalf.

The Israeli government has only implemented the preliminary measures, while it said the list of tax-free imports will be updated later through the Israeli-Palestinian Joint Economic Committee.

The Committee was established under the Oslo Accords, with an aim to regulate the economic relations between Israel and the PA.

It has not convened since 2009, as a result of the political tension between the parties

The PA demands that Israel implements all three measures. Israel had previously refused, but lately accepted under ongoing pressure from the administration of US President Joe Biden.

Israeli officials said that Israeli far-right ministers, like Finance Minister Bezalel Smotrich, who oversees the Tax Authority and the Civil Administration in Israel, also approved this decision. They said the move aligns with the Biden administration's call to improve the economic situation in the Palestinian Authority, which is believed to be on the brink of economic collapse.

The three measures could add millions of dollars to the coffers of the PA, currently going through a deteriorating financial crisis, the worst since its establishment.

For the second consecutive year, the Palestinian Authority is paying partial salaries to most of its employees due to the crisis.

Last July, Prime Minister Benjamin Netanyahu's cabinet decided that Israel would work to prevent the collapse of the PA.

The Israeli government withholds huge amounts of money in tax revenues on the PA’s behalf and hands them to the families of Israelis killed in Palestinian attacks.



Israeli Strike Kills Family of 10 in Gaza as UN Raises Alarm over Food Cutoff

Palestinians at the site of the destroyed building of Al Ahli Baptist hospital following an Israeli air strike in Gaza City, 13 April 2025. EPA/MOHAMMED SABER
Palestinians at the site of the destroyed building of Al Ahli Baptist hospital following an Israeli air strike in Gaza City, 13 April 2025. EPA/MOHAMMED SABER
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Israeli Strike Kills Family of 10 in Gaza as UN Raises Alarm over Food Cutoff

Palestinians at the site of the destroyed building of Al Ahli Baptist hospital following an Israeli air strike in Gaza City, 13 April 2025. EPA/MOHAMMED SABER
Palestinians at the site of the destroyed building of Al Ahli Baptist hospital following an Israeli air strike in Gaza City, 13 April 2025. EPA/MOHAMMED SABER

Israeli strikes on the Gaza Strip overnight into Thursday killed at least 23 people, including a family of 10, local health officials said. The United Nations meanwhile raised alarm over the mounting impact of Israel’s six-week-old blockade preventing all food and other supplies from entering the territory.

Israel ended its ceasefire with Hamas last month and renewed its bombardment, killing hundreds of people and seizing large parts of the territory to pressure the militants to accept changes to the agreement, The Associated Press said.

A strike in the southern city of Khan Younis killed five children, four women and a man from the same family, all of whom suffered severe burns, according to Nasser Hospital, which received the bodies. Strikes in northern Gaza killed 13 people, including nine children, according to the Indonesian Hospital.

The Israeli military says it tries to avoid harming civilians and blames their deaths on Hamas because it operates in residential areas. There was no immediate comment on the latest strikes.

The UN humanitarian office, known as OCHA, said that almost all of Gaza’s more than 2 million people now rely for food on the only 1 million prepared meals produced daily by charity kitchens supported by aid groups.

Other food distribution programs have shut down for lack of supplies, and the UN and other aid groups have been sending their remaining stocks to the charity kitchens.

The only other way to get food in Gaza is from markets. But most cannot afford to buy there because of spiraling prices and widespread shortages, meaning humanitarian aid is the primary food source for 80% of the population, the World Food Program said in its monthly report for April on Gaza’s markets.

“The Gaza Strip is now likely facing the worst humanitarian crisis in the 18 months since the escalation of hostilities in October 2023,” OCHA said.

Most people in Gaza are now down to one meal a day, said Shaina Low, a spokesperson for the Norwegian Refugee Council. “It’s far lower than what is needed,” she said.

Water is also growing scarce, with Palestinians standing in long lines to fill jerry cans from trucks. Omar Shatat, an official with a local water utility, said people are down to six or seven liters per day, well below the amount the UN estimates is needed to meet basic needs.

Israeli Defense Minister Israel Katz said Wednesday that preventing humanitarian aid is one of the “central pressure tactics” used against Hamas, which Israel accuses of siphoning off aid to maintain its rule.

Israel is demanding that Hamas release more hostages at the start of any new ceasefire and ultimately agree to disarm and leave the territory. Katz said that even afterward Israel will continue to occupy large “security zones” inside Gaza.

Hamas is currently holding 59 hostages, 24 of whom are believed to be alive. It says it will only return them in exchange for the release of more Palestinian prisoners, a full Israeli withdrawal from Gaza and a lasting truce, as called for in the now-defunct ceasefire agreement reached earlier this year.

Hani Almadhoun, co-founder of Gaza Soup Kitchen, said his kitchen has food for about three more weeks.

“But food is loosely defined. We have pasta and rice but nothing much beyond that. No fresh produce. There is no chicken or beef. The only thing we have is canned meat,” he said. He said 15-20% of the people who come to his kitchen for food leave empty-handed.

The war began when Hamas-led militants attacked southern Israel on Oct. 7, 2023, killing some 1,200 people, mostly civilians, and abducting 251. Most of the hostages have since been released in ceasefire agreements or other deals. Israel has rescued eight and recovered dozens of bodies.

Israel's offensive has killed over 51,000 Palestinians, mostly women and children, according to the Gaza Health Ministry, which does not say how many of the dead were civilians or combatants. Israel says it has killed around 20,000 militants, without providing evidence.

The war has destroyed vast parts of Gaza and most of its food production capabilities. The war has displaced around 90% of the population, with hundreds of thousands of people living in tent camps and bombed-out buildings.