RAMALLAH, Palestine/ISTANBUL

The Palestinian Ministry of Finance said Thursday that Israel has been withholding nearly $2 billion in Palestinian tax revenues since 2019, describing this as a "flagrant violation" of all signed agreements.

In a statement, the ministry said Israel continues to withhold these clearance funds under various pretexts.

Clearance revenues represent taxes and customs duties imposed on goods imported into Palestinian territories either via Israel or through Israeli border crossings, including land, sea and air.

According to the Oslo Accords signed between the Palestine Liberation Organization (PLO) and Israel in 1993, Israel is responsible for collecting these funds and transferring them monthly to the Palestinian government, deducting a 3% administrative fee to cover collection costs.

The Palestinian Ministry of Finance said Israel has been withholding approximately 7 billion shekels (around $2 billion) from 2019 until last February.

The total Israeli deductions from clearance revenues amounted to 20.6 billion shekels ($5.6 billion) from 2012 through February, according to the ministry's statement.

The ministry considered Israel's continued withholding of funds a blatant violation of agreements that directly affects the Palestinian economy and the livelihood of citizens.

The Palestinian government said that in cooperation with international partners and relevant stakeholders, it continues pressing for the release of these funds and "an end to the illegal policy of deductions from our people's funds."

On May 23 last year, the World Bank said the Palestinian Authority is at the risk of financial collapse.