Israel Refuses To Give Revenues to Palestinians

Withholding Comes in Retaliation for U.N. Statehood Push

By Reuters

Published December 02, 2012.
  • Print
  • Share Share

Israel said on Sunday it was withholding this month’s transfer of tax revenues to the Palestinian Authority, after the United Nations’ de facto recognition of a Palestinian state.

Under interim peace deals, which Israel says the Palestinians violated by unilaterally seeking an upgrade of their status at the United Nations, it collects about $100 million a month in duties on behalf of the authority.

But, Israeli officials said, the authority owes about $200 million to the Israel Electric Corporation, and that money will now be deducted from the tax transfers.

The cash-strapped authority, which exercises limited self-rule in the occupied West Bank, largely depends on the tax money to pay civil servants’ salaries. Yasser Abed Rabbo, a senior Palestinian official, said Israel was guilty of “piracy and theft” by refusing to hand over the funds.

Israel has previously frozen payments to the body during times of heightened security and diplomatic tensions, provoking strong international criticism, such as when the U.N. cultural body UNESCO granted the Palestinians full membership a year ago.

“I do not intend this month to transfer the funds to the Palestinians. In the coming period I intend to use the money to deduct debts the Palestinian Authority owes to the Israel Electric Corporation and other bodies,” Finance Minister Yuval Steinitz said on Israel Radio.

The U.N. victory for the Palestinians was a diplomatic setback for the United States and Israel, which were joined by only a handful of countries in voting against upgrading the Palestinians’ observer status at the U.N. to “non-member state”, like the Vatican, from “entity”.

Hours after the U.N. vote, Israel said it was authorising 3,000 new settler homes in the West Bank and East Jerusalem and expediting planning work for thousands more dwellings in a geographically sensitive area close to Jerusalem, which critics said would kill off Palestinian hopes of a viable state.

The United States said the expansion plan, which also drew strong European criticism, was counterproductive to the resumption of Israeli-Palestinian peace talks frozen since 2010.


The Jewish Daily Forward welcomes reader comments in order to promote thoughtful discussion on issues of importance to the Jewish community. In the interest of maintaining a civil forum, The Jewish Daily Forwardrequires that all commenters be appropriately respectful toward our writers, other commenters and the subjects of the articles. Vigorous debate and reasoned critique are welcome; name-calling and personal invective are not. While we generally do not seek to edit or actively moderate comments, our spam filter prevents most links and certain key words from being posted and The Jewish Daily Forward reserves the right to remove comments for any reason.





Find us on Facebook!
  • Talk about a fashion faux pas. What was Zara thinking with the concentration camp look?
  • “The Black community was resistant to the Jewish community coming into the neighborhood — at first.” Watch this video about how a group of gardeners is rebuilding trust between African-Americans and Jews in Detroit.
  • "I am a Jewish woman married to a non-Jewish man who was raised Catholic, but now considers himself a “common-law Jew.” We are raising our two young children as Jews. My husband's parents are still semi-practicing Catholics. When we go over to either of their homes, they bow their heads, often hold hands, and say grace before meals. This is an especially awkward time for me, as I'm uncomfortable participating in a non-Jewish religious ritual, but don't want his family to think I'm ungrateful. It's becoming especially vexing to me now that my oldest son is 7. What's the best way to handle this situation?" http://jd.fo/b4ucX What would you do?
  • Maybe he was trying to give her a "schtickle of fluoride"...
  • It's all fun, fun, fun, until her dad takes the T-Bird away for Shabbos.
  • "Like many Jewish people around the world, I observed Shabbat this weekend. I didn’t light candles or recite Hebrew prayers; I didn’t eat challah or matzoh ball soup or brisket. I spent my Shabbat marching for justice for Eric Garner of Staten Island, Michael Brown of Ferguson, and all victims of police brutality."
  • Happy #NationalDogDay! To celebrate, here's a little something from our archives:
  • A Jewish couple was attacked on Monday night in New York City's Upper East Side. According to police, the attackers flew Palestinian flags.
  • "If the only thing viewers knew about the Jews was what they saw on The Simpsons they — and we — would be well served." What's your favorite Simpsons' moment?
  • "One uncle of mine said, 'I came to America after World War II and I hitchhiked.' And Robin said, 'I waited until there was a 747 and a kosher meal.'" Watch Billy Crystal's moving tribute to Robin Williams at last night's #Emmys:
  • "Americans are much more focused on the long term and on the end goal which is ending the violence, and peace. It’s a matter of zooming out rather than debating the day to day.”
  • "I feel great sorrow about the fact that you decided to return the honor and recognition that you so greatly deserve." Rivka Ben-Pazi, who got Dutchman Henk Zanoli recognized as a "Righteous Gentile," has written him an open letter.
  • Is there a right way to criticize Israel?
  • From The Daily Show to Lizzy Caplan, here's your Who's Jew guide to the 2014 #Emmys. Who are you rooting for?
  • “People at archives like Yad Vashem used to consider genealogists old ladies in tennis shoes. But they have been impressed with our work on indexing documents. Now they are lining up to work with us." This year's Jewish Genealogical Societies conference took place in Utah. We got a behind-the-scenes look:
  • from-cache

Would you like to receive updates about new stories?




















We will not share your e-mail address or other personal information.

Already subscribed? Manage your subscription.