Israel To Keep Palestinian Cash Till March

$100M Monthly Move Is Punishment for U.N. Statehood Push

By Reuters

Published December 12, 2012.
  • Print
  • Share Share

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, Israel’s foreign minister said.

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 on Tuesday night.

Israel says Abbas violated previous peace accords by sidestepping stalled negotiations and securing a Palestinian status upgrade in the United Nations last month.

Israel has already withheld the December transfer, saying the money would be used to start paying off $200 million the Palestinians owe the Israel Electric Corporation.

Lieberman, a hardliner in Prime Minister Benjamin Netanyahu’s conservative 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 criticised 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.

Israel has previously frozen payments to the PA 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.

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

Hours after the U.N. vote, Israel said it would authorise 3,000 new settler homes in the West Bank and East Jerusalem and expedite planning work for thousands more in a geographically sensitive area close to Jerusalem. Critics say this plan would kill off Palestinian hopes of a viable state.


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!
  • "If you want my advice: more Palestinians, more checkpoints, just more reality." What do you think?
  • Happy birthday Barbra Streisand! Our favorite Funny Girl turns 72 today.
  • Clueless parenting advice from the star of "Clueless."
  • Why won't the city give an answer?
  • BREAKING NEWS: Israel has officially suspended peace talks with the Palestinians.
  • Can you guess what the most boring job in the army is?
  • What the foolish rabbi of Chelm teaches us about Israel and the Palestinian unity deal:
  • Mazel tov to Idina Menzel on making Variety "Power of Women" cover! http://jd.fo/f3Mms
  • "How much should I expect him and/or ask him to participate? Is it enough to have one parent reciting the prayers and observing the holidays?" What do you think?
  • New York and Montreal have been at odds for far too long. Stop the bagel wars, sign our bagel peace treaty!
  • Really, can you blame them?
  • “How I Stopped Hating Women of the Wall and Started Talking to My Mother.” Will you see it?
  • Taglit-Birthright Israel is redefining who they consider "Jewish" after a 17% drop in registration from 2011-2013. Is the "propaganda tag" keeping young people away?
  • Happy birthday William Shakespeare! Turns out, the Bard knew quite a bit about Jews.
  • Would you get to know racists on a first-name basis if you thought it might help you prevent them from going on rampages, like the recent shooting in Kansas City?
  • 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.