The security cabinet on Sunday authorized the deduction of the amount the Palestinian Authority pays terrorists and their families from the taxes and tariffs Israel collects for the Ramallah-based government.
The deduction came to NIS 597 million, which the National Bureau for Counter-Terror Financing in the Defense Ministry reported was the sum of PA funds that went to indirect support for terrorism in 2020.
PA funding for terrorists has increased since 2019, when it totaled NIS 517.4m.
The cabinet authorized that it had read the report, and the Finance Ministry may begin deducting one-12th of the sum each month, according to law.
The PA pays convicted terrorists and the families of those killed while committing acts of terrorism a monthly sum. The living terrorists receive more, depending on their prison sentence. That means the greater the severity of the crime, i.e., the more Israelis killed and wounded, the more they receive each month.
PA President Mahmoud Abbas has maintained the policy despite Israel’s deductions, as well as the US banning aid to the PA as long as it continues.
The Deduction Law, also known as the so-called Pay for Slay Law, passed in 2018. It requires the defense minister to provide the security cabinet with information about how much the PA pays terrorists and their families each year. The Finance Ministry must then deduct those funds from the taxes and tariffs Israel collects for the PA on a monthly basis, based on the amount the PA paid terrorists the previous year, divided by 12.
All imports to the PA go through Israeli checkpoints, and Israel collects VAT and tariffs for the PA, as per the Oslo Accords. Those funds are the largest source of income for the PA. Israel also collects income tax and health-insurance funds for Palestinians who work for Israelis.