Palestinian Authority Admits Payments to Terrorists Have Cost It Billions of Dollars — In Just Five Years Alone

The Palestinian Authority (PA) prioritizes its payments to terrorists, and has therefore lost more than 6.96 billion shekels (over $1.88 billion) in the last 5 years alone, according to its own data.

The official PA news agency, WAFA, criticized Israel for causing the PA’s financial crises largely by deducting money that the PA uses for terror payments. However, a look at the PA’s numbers shows that the PA itself is responsible for its crises.

Israel’s deductions are in three main categories.

Deduction 1: Pay-for Slay

Every year, in accordance with its Anti “Pay-for-Slay” law, Israel makes 12 monthly deductions from the tax transfers that it would otherwise have sent the PA. This deduction is identical to the amount that the PA rewarded imprisoned terrorists and families of so-called Martyrs in the previous year.

Deduction 2: Money to Gaza since October 7

After the massacre and atrocities committed by Hamas and Gazans on October 7, 2023, Israel has been making deductions from the PA in accordance with the amount that the PA sends to Gaza each month. The sum of these deductions is sent to Norway for future distribution, when Israel will be able to be sure that the proceeds will not go directly into Hamas’ hands.

Deduction 3: Repaying PA debts

For many years, Israel generously allowed the Palestinian Authority to use Israeli hospitals, electricity, and water, even though the PA did not pay its fair share. Israel finally decided to make a deduction from the tax transfers in accordance with a portion of the debt that the PA has incurred.

The PA’s official daily said that these “illegal deductions” are the cause of its financial crises. However, it is clear from looking at the PA’s own figures that the PA has only itself to blame for its woes.

Deduction 1: Pay-for Slay

The PA’s complaint:

According to the data, the Israeli deductions in the category of “allowances of the families of the Martyrs and the prisoners,” which the PA has been paying these families, stand at 3.48 billion shekels [over $945 million] from February 2019 until July 2024, at an average of 53.5 million shekels [over $14.5 million] a month.

[WAFA, official PA news agency, Aug. 18, 2024]

The PA daily claims that these deductions are the source for its loss of 3.48 billion shekels [over $944 million] in five years.

Significantly, had the PA not rewarded the terrorists with 3.48 billion shekels, Israel would not have deducted 3.48 billion shekels. 3.48 billion multiplied by 2 equals 6.96 billion. The PA thus would have had 6.96 billion shekels [nearly $189 billion] to help its people, if only it would have stopped rewarding terrorism.

This sum only accounts for the PA’s losses since Israel began these deductions in 2019. If we take into consideration that the PA passed its “Prisoners Law” in 2005, thus committing to pay monthly salaries to terrorist prisoners, we find that the PA has spent many billions more on the goal of rewarding terrorists. It is this mission that actually serves as the chief cause of its financial troubles.

Deduction 2: Money to Gaza since October 7

To keep money out of the hands of Hamas during the war, Israel has been deducting from the PA the amount equivalent to what the PA sends monthly to Gaza. This is what the PA reported:

…the Israeli deductions from the tax revenues in the category of “monies designated for the Gaza Strip” are approximately 2.55 billion shekels [over $692 million] since the outbreak of the war against the Gaza Strip, from the start of October 2023 until July 2024, and 255 million shekels [over $69 million] a month on average. Israel has been deducting these monies as a punitive measure against the PA’s refusal to stop transferring the funds designated for the Gaza Strip, particularly the salaries of the [PA] public employees, foremost among them the employees in the health and education sectors.

[WAFA, official PA news agency, Aug. 18, 2024]

Of course, this is not meant to be punitive against the workers personally, but rather it is a clear security necessity. In its war in Gaza, Israel has been supplying fuel and other goods as humanitarian aid, which is stolen daily by Hamas, thus strengthening the terror organization and extending the war by many months. It would be completely negligent to allow tens of millions of dollars into Gaza that would most certainly end up in the hands of Hamas as well.

Deduction 3: Repaying PA debts

The PA further complained about a third Israeli deduction when it is not a deduction at all, rather it is merely the legitimate collection of PA debts to Israel:

… the cost of the Israeli deductions from the tax revenues for electricity, water, sewage, and hospitals has reached approximately 20 billion shekels [over $5.43 billion] from 2012 to July 2024.

[WAFA, official PA news agency, Aug. 18, 2024]

This deduction, likewise, is not the fault of Israel but that of the PA. For many years, the PA did not pay its dues and expected Israel to keep supplying services with the Israeli taxpayer footing the bill. Had the PA been more responsible and paid on time for what it had received, there would be no debt deduction.

In summary, the PA habitually creates its own problems and then blames Israel or others for them. If it would only be timely with the payments that it should be making, Israel would have no need to deduct them from tax revenues. And if it would not make payments that it should not be making — i.e. rewarding terrorists with high salaries for their crimes — then it would have at least 10 billion shekels more to spend on its people.

Itamar Marcus is Palestinian Media Watch (PMW)’s Founder and Director. Ephraim D. Tepler is a contributor to Palestinian Media Watch. A version of this article originally appeared at PMW.