Israel transferred 435 million shekels ($116 million) in withheld tax revenues to the Palestinian Authority, the first such transfer since April, the Israeli and Palestinian Finance Ministries said.

Israel collects taxes on goods that pass through it to the West Bank on behalf of the Palestinian Authority, and transfers the revenue to Ramallah under a long-standing arrangement between the two sides.

Israeli Finance Minister Bezalel Smotrich has been withholding the amounts allocated for administrative spending in Gaza since last October 7.

Israel also deducts money for electricity, water, and the costs of treating Palestinians in Israeli hospitals.

Less taxes

Palestinian officials say that the amount transferred by Israel is much less than the taxes collected each month, even after these deductions.

The far-right Smotrich opposes sending money to the Palestinian Authority, which uses it to pay the wages of public sector workers. The Palestinian Authority currently pays only between 50 and 60% of salaries.

Israel deducts funds equal to the total of the so-called martyr's allowances that the Palestinian Authority pays to the families of those killed or imprisoned by Israel.

Last week, Smotrich agreed to transfer the funds this month after obtaining facilities from the Israeli government regarding sanctions on Palestinian Authority officials and the legalization of 5 Israeli settlements in the West Bank.

The Palestinian Authority said in a statement after its government meeting yesterday that its contacts and international pressure led to Israel transferring these funds.

It added that it would push to recover more than 6 billion shekels ($1.6 billion) of seized funds to meet its financial obligations.