The Knesset approved legislation today (Monday) requiring Israel to deduct money from tax transfers to the ‘Palestinian’ Authority based on compensation paid to terror victims and war damages.
The bill, sponsored by Knesset Member Avichai Boaron, passed its second and third readings with 29 lawmakers in favor and five opposed. Under the new law, Israel will annually withhold an amount determined by the Ministerial Committee on National Security Affairs.
The deduction will be based on a report submitted by the finance minister detailing payments made the previous year to victims of hostile actions through the National Insurance Institute, as well as compensation paid from the Property Tax Compensation Fund for war damages.
The report will also include compensation awarded to terror victims by the courts, including under the Exemplary Damages Law, as well as outstanding compensation debts to terror victims. The withheld funds will first go toward covering debts and compensation to terror victims in cases where existing seizure mechanisms don’t provide the required amounts. Only after meeting these obligations will any remaining funds transfer to the state treasury.
Boaron said after the vote: “This is the simplest and most just law. The ‘Palestinian’ Authority, which bears vicarious liability for damages, hasn’t faced legal action and no one holds it accountable for the harm it caused. This law tells the Authority—you cause damage and we will charge you for that money. Israeli blood and Israeli property are not ownerless.”