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EU exerting efforts to release withheld Palestinian tax funds: official | Collector
EU exerting efforts to release withheld Palestinian tax funds: official
Daily Finland

EU exerting efforts to release withheld Palestinian tax funds: official

A European Union official said Sunday that efforts are underway to secure the release of Palestinian tax revenues withheld by Israel, warning of mounting financial pressure on the Palestinian Authority, reported Xinhua. Shadi Othman, media officer at the EU Office in Jerusalem, told reporters in Ramallah that the bloc is working with regional and international partners to address the dispute, saying that without the funds, "the Palestinian government cannot meet all its obligations." He said the issue remains on the agenda in talks between Israel and EU member states, but added that "unfortunately, there has been no progress recently." Othman said the Palestinian Authority's fiscal crisis is "deepening and worsening," with direct impacts on public services and citizens, and urged a solution. While noting continued European financial support, he said it cannot resolve the core problem, stressing that the resumption of withheld clearance revenues is essential. The revenues, collected by Israel under the Paris Economic Protocol on imports entering Palestinian territories, are transferred to the Palestinian Authority, minus a 2.5-percent fee. Since November 2021, the Palestinian Authority has been unable to pay full public sector salaries, with payments ranging between 50 and 90 percent. Othman said a donor conference in Brussels on Monday will take place at a "very difficult time," amid worsening finances and conditions in the West Bank and Gaza. Palestinian Prime Minister Mohammad Mustafa will lead the delegation, according to Deputy Foreign Minister Omar Awadallah, who said about 5 billion U.S. dollars in revenues are being withheld. He said donor countries could help ease the crisis by supporting the Palestinian Authority and pressing for an end to Israel's economic measures.

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