The Palestinian Authority’s terror rewarding “Pay-for-Slay” policy has many aspects. The most well known is the fact that the PA pays terrorists and their families approximately NIS 1 billion (circa $333M depending on the exchange rate) every year as a reward for their participation in terror.
One of the less known aspects of the policy is the tax exemption the PA gives to terrorists who spent 20 years or more in prison – as a general rule, those convicted of murder.
Adopted in 2014 by the PA, the “Decision with Legislative Force No. 5 of 2014 regarding exemption from import duties and taxes on vehicles for released prisoners” provides that all terrorists who spent more than 20 years in prison are entitled to purchase a car free of taxes.
In the normal course of events, the number of terrorists who can purchase cars tax free is somewhat limited. However, as a result of the release of terrorists to secure the release of the hostages kidnapped during the October 7 Massacre and held by Hamas and the other Gazan terrorist organizations, there are now 3361 potential terrorists who are entitled to purchase a tax-free car.
Taxes levied by the PA for the purchase of new cars range from 70% to 100% of the value of the car. Accordingly, this exemption can be quite substantial for the terrorists, on the one hand, while on the other hand, simultaneously causing the PA a loss of millions of shekels in tax revenues.
Contrary to false claims, the PA’s financial difficulties are not the result of Israeli policies, but rather a direct result of the PA’s insistence to keep rewarding terror.
* * *
Notes
1. 204 of the terrorists released in January 2025 and 132 of the terrorists released in October 2025 had spent over 20 years in prison.
