Finance Minister Yuval Steinitz recently revealed that Israel has no intention of transferring tax and tariff funds it amassed for the Palestinians this December, after the latter’s successful bid for upgraded status at the United Nations. The minister disclosed his decision ahead of the weekly session of the Cabinet members.
Minister Steinitz explained that this month’s tax collection will not be forwarded to the Palestinian Authority because they will serve as payment for the outstanding debts the Palestinian Authority has to the Israeli electricity. A spokesperson of the Minister has once told AFP that the Palestinians owed around 800 million shekels from Israel’s electricity company.
Steinitz’s spokesperson however has also elucidated that the halting of funds and tax transfer by Israel to the Palestinian Authority is only applicable this month and that normal transactions will resume afterwards. But still, the Palestinians insisted that Israel’s current decision to withhold funds is apparently illegal.