Israel Cancels Tax Revenue Agreement with Norway
According to the Yediot Ahronot newspaper, Israel has canceled an agreement to deposit tax revenues collected on behalf of the Palestinian Authority into its Norwegian account. This decision was made by Israel’s reduced security cabinet and was reportedly kept secret. According to the report, this decision is considered a precaution against Norway’s steps such as recognizing the Palestinian state last May.
With the cancellation of the agreement, it was reported that Israel planned to make an agreement with another country instead of Norway to undertake the transfer of tax revenues collected on behalf of the Palestinian Authority. It was noted that Israel was trying to convince Switzerland in particular on this issue. Norway was described in the news as “the country most hostile to Israel in Europe.” It was also stated that the Israeli Foreign Ministry was working to create additional punitive measures against Norway; However, no detailed information was given about these measures.
Developments on Tax Funds
On November 3, 2023, the Israeli Council of Ministers decided to cut the amount allocated to the Gaza Strip and Palestinian prisoners from the tax funds collected on behalf of the Palestinian government. Following this decision, on November 5, 2023, the Palestinian Authority announced that it refused to receive the tax funds. The Norwegian Ministry of Foreign Affairs announced on February 19 that the process that was collected by Israel on behalf of the Palestinian Authority and stopped after October 7 had been taken over. The statement stated that Israel should transfer the taxes it collected to Norway, and Norway should send the amount not allocated for Gaza to the Palestinian Authority.
Paris Economic Protocol
In accordance with the Paris Economic Protocol signed between Israel and the Palestine Liberation Organization (PLO) in 1994, the Israeli government collects approximately $2 billion in taxes annually on behalf of Palestinians from the border gates under its control and transfers this amount to the Palestinian treasury. .
Norway’s Decision to Recognize Palestine
Norway announced that it officially recognized the state of Palestine on May 28, 2023. Following this development, Israel recalled its ambassadors from Ireland and Norway, which recognize the state of Palestine. Following Norway’s decision to recognize the state of Palestine simultaneously with Ireland and Spain, the number of countries that recognize the state of Palestine increased to 146.
