RAMALLAH – Israeli Finance Minister Yuval Steinitz completed the transfer of 435 million Israeli shekel (more than $110,000) in Palestinian tax money to the Israel Electric Corporation, in order to pay for the Palestinian Authority (PA)'s debt. Israel has decided to withhold tax revenues it collects on behalf of Palestine during the month of November in response to the UN General Assembly vote in November in favor of upgrading the Palestinians' status to nonmember observer state. Earlier, Israeli foreign minister was quoted as saying that Israel will withhold tax revenues from Palestinian President Mahmoud Abbas's administration until March at least in response to his statehood campaign at the United Nations. Under interim peace deals, Israel collects some $100 million a month in duties on behalf of the Palestinian Authority (PA) in the occupied West Bank – money that is badly needed to pay public sector salaries. “The Palestinians can forget about getting even one cent in the coming four months, and in four months' time we will decide how to proceed,” Foreign Minister Avigdor Lieberman said in a speech Tuesday night. The coalition government, said the Palestinians also had another debt with the Israeli water authority that would have to be paid off. “Israel is not prepared to accept unilateral steps by the Palestinian side, and anyone who thinks they will achieve concessions and gains this way is wrong,” he said. Yasser Abed Rabbo, a senior Palestinian official, said earlier this month that Israel was guilty of “piracy and theft” by refusing to hand over the funds. The European Union has also criticized Israel for not handing over the cash. “Contractual obligations ... regarding full, timely, predictable and transparent transfer of tax and custom revenues have to be respected,” it said on Monday. – With agencies
