Mohammed Mar'i Saudi Gazette RAMALLAH – Israel has decided to withhold tax revenues it collects on behalf of the Palestinian Authority (PA) during the month of November in response to the United Nations move. The Israel Finance Minister Yuval Steinitz said at the beginning of the weekly cabinet meeting that taxes, which total 460 million Israeli shekel (roughly $121 million) and are intended for the salaries of PA employees, would be withheld in response to the Palestinians'unilateral UN move. “I have no intention of transferring the tax payments to the PA this month. I plan to use them to offset the Palestinian debt to the Israel Electric Corporation.” The Israeli company says it's considering cutting off power to large parts of the West Bank because of unpaid bills of more than $125 million. “This is a Palestinian provocation and an attempt to advance their state without recognizing Israel,” Steinitz said. “We said this wouldn't pass quietly.” The PA is suffering a severe cash shortage and is having a hard time paying its employees. Palestinian officials said they would not be able to meet their commitments, including paying salaries, without the funds. Under the Oslo Accords, the Israeli government administers tax and customs duty payments on behalf of the PA. Israel transfers monthly some 300 million Israeli shekels ($85 million) it collects on behalf of the PA on goods imported by Palestinians and destined to the Palestinian territories. Israel has previously frozen payments to the Palestinian government during times of heightened security and diplomatic tensions, provoking strong international criticism. On October 2011, Israel withheld more than $200 million in taxes it owed to Palestinians after the United Nations Educational, Scientific and Cultural Organization (UNESCO) admitted the Palestinian state as a full member. At the beginning of 2001, during the second intifada, Israel withheld more than $50 million in taxes it owed the Palestinians in order to bring the PA to crack down on Palestinian armed groups that carry attacks against Israeli targets. Israel had threatened before the vote to take measures against the PA, listing the withholding of tax money to offset the electricity debt as an example. The approval of 3,000 housing units in East Jerusalem and the West Bank on Thursday was also seen as a response to the UN upgrade.
