Israel resumes transferring tax money to Palestinians

Punitive freeze on funds reportedly reversed due to PA’s dire financial straits

Illustrative photo of Israeli shekels. (Sophie Gordon/Flash90)
Illustrative photo of Israeli shekels. (Sophie Gordon/Flash90)

JTA — Israel has resumed transferring to the Palestinian Authority tax money that it collected on behalf of the PA.

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

The money freeze came after the United Nations General Assembly voted on November 29 to upgrade the Palestinian’s UN 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 PA.

The international community roundly condemned Israel for withholding the payments, which it has done before.

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