Israeli Finance Minister Bezalel Smotrich has announced his intention to cancel tax benefits for the United Nations Relief and Works Agency currently working for Palestine Refugees (UNRWA).
“The State of Israel will not give tax benefits to terrorist aides,” Smotrich wrote on X on Thursday, February 8.
Smotrich also attached a news article from the Israeli Broadcasting Authority (IBA) about his cancellation of tax exemptions for UNRWA.
The authority noted that, among other things, UNRWA was entitled to exemption from customs duties and sales tax on the import of various goods.
It also receives exemptions on value-added tax (VAT) on imports and fuel-related taxes.
The minister’s decision comes in light of the allegations revealed by Israel about the involvement of 12 of the agency’s employees who participated in the Hamas attack on October 7, 2023, on settlements around the Gaza Strip.
In response to these allegations,18 countries and the European Union (EU) decided to suspend their funding to UNRWA.
UN Secretary-General António Guterres confirmed 12 UN agency employees were implicated in Israeli accusations, leading to 9 expulsions and one death, while two others’ identities are being verified.
UNRWA has issued a warning that its activities could be halted by the end of February if its funders do not reverse their decision.
UNRWA, established in 1948, offers educational and health services to Palestinians in Gaza, the West Bank, Jordan, Syria, and Lebanon.
The agency is crucial in providing aid to two-thirds of the Gaza Strip’s 2.3 million population and plays a pivotal role during the ongoing war.