Palestine refuses to take deducted taxes from Israel

By Qais Abu Samra

RAMALLAH, Palestine (AA) – The Ramallah-based Palestinian Authority (PA) on Monday reiterated its refusal to accept deducted tax revenues collected by Israel on its behalf.

Hussein Al-Sheikh, head of the PA-affiliated General Authority of Civil Affairs said on Twitter that he had a meeting with Israeli Finance Minister Moshe Kahlon to discuss developments of the financial crisis caused by Israeli deduction of Palestinian tax revenues.

"I reiterated to him [Kahlon] our absolute refusal to receive the deducted tax revenues under the policy of deductions," he said, without giving any further details.

On Sunday, the Israeli Broadcast Authority said that the PA refused to receive 660 million shekel (some $163 million) of last month's tax revenue transferred to Palestinian banks by Israel.

Israel deducts around $11 million a month on the claim that this amount is being paid out by the PA each month to the families of Palestinians imprisoned by Israel for staging attacks against Israeli targets.

Palestinian President Mahmoud Abbas says the PA will continue to pay monthly stipends to the families of Palestinian prisoners and martyrs.

Israel collects around $175 million each month in taxes on Palestinian imports and exports on behalf of the PA, for which tax revenue represents the main source of income.

*Writing by Mahmoud Barakat