Israel deducts $176 million from Palestinian money

By Zain Khalil

JERUSALEM (AA) – Israel’s security cabinet on Sunday approved the deduction of NIS 600 million ($176 million) from the taxes of the Palestinian Authority (PA), according to local media.

Maariv newspaper said the deducted money is the same amount that was transferred by the PA to Palestinian detainees in Israeli jails and to their families last year.

Health Minister Nitzan Horowitz abstained from voting for the decision. He argued that Israel has interest in keeping security coordination with the PA, terming the decision as "unwise."

The money will be cut on 12 installments on a monthly basis, The Jerusalem Post said.

The tax revenues -- known in Palestine and Israel as maqasa -- are collected by the Israeli government on behalf of the PA on Palestinian imports and exports. Israel in return earns a commission of 3% of collected revenues.

The tax revenues constitute 63% of the PA income.

* Writing by Ahmed Asmar