israel announced earlier this year that it would withhold some $138 million in revenue to the Palestinians, which Israeli officials worked out is the amount that the PA spends on stipends for terrorists
The Palestinian Authority’s (PA) Prime Minister Mohammad Shtayyeh has asked the Russians to put pressure on israel regarding the tax cuts.
Under interim peace deals, Israel collects customs duties and other taxes on behalf of the Palestinian Authority, and transfers the funds to the Palestinians each month. These transfers cover roughly two-thirds of the Palestinian government’s budget.
Back in early February, the Palestinian Authority said it rejected its regular monthly tax transfer from Israel to protest an Israeli decision to deduct sums of money the Palestinians allegedly pay to imprisoned terrorists and terror suspects, as well as the families of those killed in attacks against Israelis.
The freeze of funds was expected to deal a heavy financial blow to the cash-strapped Palestinian leadership, already weakened by recent US cuts of more than $200 million in bilateral aid.
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According to Israel, the stipends to prisoners’ families encourage violence. Palestinians describe the payments as an important form of social welfare and say they are responsible for their citizens.
Palestinians were hoping that the move would put pressure on Israel…