U.S. Weighs New Plan: Israel May Transfer Palestinian Tax Funds to Trump-Era Gaza Peace Council

Reuters reported on Sunday that the U.S. is considering a move under which Israel would transfer Palestinian tax funds, which it has refused to pass on to the Palestinian Authority, to the Gaza Peace Council. According to the report, the money would be used to rebuild the Strip.

As a reminder, Israel froze the transfer of part of the tax funds to the Authority because of its continued support for terrorism, and due to the continued operation of the Ramallah administration’s program of funding terrorists in prison. In addition, tens of millions of shekels were temporarily seized by Israeli courts as part of lawsuits filed by Israeli civilians, victims of terror attacks, against the Palestinian Authority.

According to the Reuters report, Israel is holding about 14 billion shekels collected through tax revenues that have not been transferred to the Palestinians. The Americans are considering having part of the money transferred, as noted, to the council that would manage Gaza, while the rest would be transferred to the Palestinian Authority, on the assumption that it undergoes reforms.