JERUSALEM: Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA’s nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co. (IEC), the far-right Finance Minister Bezalel Smotrich said on Sunday.
Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.
Since the Hamas-led attack on Israel on Oct. 7, 2023, Smotrich has withheld sums earmarked for administration expenses in the Gaza Strip.
Those frozen funds are held in Norway and, he said at Sunday’s cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels.
“The procedure was implemented after several anti-Israeli actions and included Norway’s unilateral recognition of a Palestinian state,” Smotrich told cabinet ministers.
“The PA’s debt to IEC resulted in high loans and interest rates, as well as damage to IEC’s credit, which were ultimately rolled over to the citizens of Israel.”
The ultranationalist Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages.
Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

CAIRO: An explosion at a gas station triggered a massive fire in central Yemen, killing at least 15 people, health officials said Sunday.
The explosion occurred Saturday at the Zaher district in the province of Bayda, the Houthi-run Health Ministry said in a statement. At least 67 others were injured, including 40 in critical condition.
The ministry said rescue teams were searching for those reported missing. It wasn’t immediately clear what caused the explosion.
Footage circulated online showing a massive fire that sent columns of smoke into the sky and left vehicles charred and burning.
Bayda is controlled by the Houthis, who have been at war with Yemen’s internationally recognized government for more than a decade.
Elsewhere in Bayda, the Houthis attacked and looted Hanaka Al-Masoud village in the Al-Qurayshiya district last week, according to the internationally recognized government. It said there were fatalities but gave no figures.
Information Minister Moammar Al-Eryani said the attack came after a weeklong siege of the village.
“This horrific attack targeted citizens’ homes and mosques, and resulted in many casualties, including women and children, and the destruction of property,” he said.
Rights activist Riyadh Al-Dubai said the Houthis detained dozens of men and looted homes, seizing valuables such as gold, money, daggers and other possessions. He said shelling by the Houthis had continued relentlessly day and night for more than five days.
The US Embassy in Yemen condemned the attack, saying in a statement that the “deaths, injuries, and wrongful detentions of innocent Yemenis perpetrated by Houthi terrorists are depriving the Yemeni people of peace and a brighter future.”
Yemen’s civil war began in 2014, when the Houthis took control of the capital, Sanaa, and much of the country’s north, forcing the government to flee to the south, then to Saudi Arabia. 
The war has killed more than 150,000 people including civilians and combatants, and in recent years deteriorated largely into a stalemate and caused one of the world’s worst humanitarian crises.