Ramallah: Vice President Hussein Al Sheikh has expressed his appreciation for the European efforts aimed at securing the release of clearance revenues that have been withheld by the Israeli government. This development comes at a crucial time as the State of Palestine faces a severe financial and economic crisis.
According to Palestine News and Information Agency - WAFA, Vice President Al Sheikh praised the European Council for its proactive role in addressing this critical issue. He emphasized the urgency of releasing the withheld clearance revenues to alleviate the financial pressures on Palestinian institutions. The release of these funds is essential for enabling the institutions to continue providing vital services to the Palestinian populace and to bolster the resilience of the Palestinian people.
The Israeli government, which serves as the occupying power, is currently withholding approximately $6 billion in Palestinian tax revenues, recognized as 'clearance revenues', along with an additional $5 billion in frozen banking funds. These clearance revenues are critical for Palestine's economy, as they represent taxes and customs duties collected by Israel on behalf of the Palestinians for goods entering through Israeli-controlled crossings, as stipulated in the 1994 Paris Economic Protocol. These revenues are typically transferred to the Palestinian government on a monthly basis.
The situation has been further exacerbated following the onset of what has been described as genocidal aggression on Gaza in October 2023. In response, Israel has expanded its deductions to include an additional monthly amount equivalent to Gaza's share of the State of Palestine's budget.
During its summit in Brussels on June 18-19, the European Council reiterated its call for Israel to 'urgently release all withheld clearance revenues'. The council also emphasized the importance of extending correspondent banking services between Israeli and Palestinian banks to ensure the effective functioning of the Palestinian Authority and the continued delivery of essential services to the Palestinian population.