Israel exploring possibility to transfer tax revenues to Palestinian Authority via third party

The security cabinet of Israel explored the option of transferring funds earmarked for the Palestinian Authority through a third party, which would subsequently transfer the funds to Ramallah. However, no vote was taken to implement this potential solution during a meeting held last night, as reported by Hebrew media outlets.

Finance Minister Bezalel Smotrich has refused to hand over the millions of dollars in tax revenues that are owed to the Palestinian Authority since October 7, suspecting that the cash could be transferred to Hamas members.

Under interim peace accords, Israel’s finance ministry collects tax on behalf of the Palestinians and makes monthly transfers to the PA, which has limited self rule in the occupied West Bank, but there have been constant wrangles over the arrangement.

Meanwhile, a member of Israel’s War Cabinet said that only a cease-fire deal can win the release of dozens of hostages held by Hamas in Gaza and that those claiming they can be freed through military pressure are spreading illusions.

Former army chief Gadi Eisenkot, whose son was killed several weeks before while fighting in Gaza, told the investigative program “Uvda,” broadcast on Israel’s Channel 12 television station late Thursday, that “the hostages will only return alive if there is a deal, linked to a significant pause in fighting.”

He said dramatic rescue operations are unlikely because the hostages are apparently spread out, many of them in underground tunnels. Claiming hostages can be freed by means other than a deal “is to spread illusions.”

Prime Minister Benjamin Netanyahu and Defense Minister Yoav Gallant have said the fighting will continue until Hamas is crushed, and argued that only military action can win the release of the hostages.

In a thinly veiled criticism of Netanyahu, Eisenkot also said strategic decisions about the direction of the war, now in its fourth month, must be made urgently, and that a discussion about an endgame should have begun immediately after fighting started Oct. 7 in response to the deadly Hamas attack on southern Israel.

With inputs from agencies.