Israeli fears of the outbreak of a “third intifada” in the West Bank due to the withholding of tax funds

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The Israeli occupation army fears the outbreak of a “third intifada” in the West Bank, as a result of the Israeli government cutting off funding to the Palestinian Authority, according to what Hebrew media reported.

The Israeli public broadcaster (Radio Kan) said Thursday that the occupation army warned the government that its policy of cutting off funding to the Palestinian Authority “may push the occupied West Bank into a third intifada.”

This warning coincides with the deteriorating economic situation in the West Bank, and the escalation of the campaign of raids and arrests of hundreds of Palestinians.

Since October 7, army and settler attacks in the West Bank, including Jerusalem, have led to the death of 531 Palestinians, the injury of about 5,000, and the arrest of 9,040, according to Palestinian sources.

Since the start of the Israeli war on the Gaza Strip, Israel has prevented Palestinian workers from entering the West Bank.

The Palestinian Ministry of Finance also announced earlier that Israel is withholding about 6 billion shekels ($1.61 billion) in total from the tax revenues it collects on behalf of the Palestinian Authority.

The Israeli Broadcasting Corporation quoted an army memorandum that “tensions resulting from financial restrictions threaten to transform the West Bank from a secondary theater of the war into a primary theater.” The Hebrew Authority, citing an Israeli official who requested to remain anonymous, confirmed the existence of the memorandum, saying that it had been circulated between several government ministries, the army, and security agencies “more than a week ago.”

In the same context, Palestinian government spokesman Muhammad Abu Al-Rub said that the tax revenues that Israel withholds from the Palestinian Authority are equal to 70% of the general budget revenues, and described them as part of a general campaign against the Palestinians in the West Bank and Gaza Strip.

He added: "A severe financial blockade imposed by Israel on the Palestinian people and the Palestinian leadership, as is the case in the war in the Gaza Strip."

Israel collects taxes on behalf of the Palestinian Authority against Palestinian imports on imported goods, which it calls “clearance funds,” with a monthly average of $220 million.

The Palestinian Authority relies on clearing funds to pay the salaries of its employees, and without them it will not be able to fulfill its obligations towards wages and the expenses of government institutions.