January 30, 2013

JERUSALEM (JTA) — Israel has resumed transferring to the Palestinian Authority tax money that it collected on behalf of the P.A.

Israeli media reported Wednesday that Prime Minister Benjamin Netanyahu decided to transfer all the money withheld from December, due to the P.A.’s serious financial problems. Tax money collected for the P.A. from November, reportedly about $115 million, was transferred to the Israel Electric Corp. to cover part of the P.A.’s debt to the utility.

The money freeze came after the United Nations General Assembly voted on Nov. 29 to upgrade the Palestinian’s U.N. status to non-member state observer, against Israel’s wishes.

Israel collects income tax from Palestinians working in Israel, as well as import duties for the P.A.

Israel was condemned roundly in the international community for withholding the payments.  It is not the first time that Israel has withheld tax payments to the PA.
 

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