Israel Makes Good on the Threat – PA Funds Used to Pay for Electricity


Minister of Finance Dr. Yuval Shteinitz on Wednesday 29 Kislev 5773 announced that Israel made good on its promise to hold back tax revenues intended for the PA (Palestinian Authority) and 435 million NIS of the PA’s over 600 million NIS dept to the Israel Electric Company was paid using these funds.

Funds are collected by Israel from PA-generated profits and these tax revenues are given over to the PA but in this case, Israel held the payment in response to the PA’s unilateral move, applying for observer status in the UN.

The daily Yisrael HaYom adds that Israel also cancelled the VIP cards of a number of PA officials, including Jibril Rajoub. The cards permitted them free access at crossings from PA areas to areas under Israeli control.

(YWN – Israel Desk, Jerusalem)


  1. What’s the issue. Israel owes the PA the money for the taxes they collect, and the PA owes Israel for the electricty they bought. In such situations, creditors normally apply money they owe to a debtor to the debtor’s debts. It’s standard commercial practice.