The Israeli occupation government has offered financial aid to the Palestinian Authority (PA) to ease it’s financial crisis.
According to Israel media, Israel recently slashed the gasoline tax it was collecting from the PA by 50 per cent, reducing it to 1.5 per cent instead of three per cent as stipulated by the Paris Economic Protocol signed in 1994.
It said the measure will save the PA some 80 million shekels ($20 million) annually, adding that other measures taken will help the Palestinian government to the tune of some 270 million shekels ($70 million) this year including taxes collected on behalf of the PA.
The development comes after US warned Israel that the Palestinian Authority is on the brink of collapse and needs support.
As per a recent report by Al Jazeera, the Palestinians no more believe that the PA has the military capabilities or the political will – to protect the interests of Palestine
The PA was created under the 1993 Oslo Accords between the Palestine Liberation Organisation (PLO) and Israel. It was formed as an interim, five-year governing body meant to lead to an independent Palestinian state with the occupied territories of East Jerusalem, the West Bank and the Gaza Strip.
