Israel Resumes Tax Payments to Palestinians

Netanyahu Cut Reimbursement in Statehood Tit-for-Tat Feud

By Reuters

Published March 25, 2013.
  • Print
  • Share Share

Israel said on Monday it would restart regular monthly tax transfers to the Palestinian Authority, restoring vital funding days after U.S. President Barack Obama called for confidence-building steps toward peace.

Israel began withholding the money - about $100 million in tax revenues it collects each month on behalf of the Authority - in November after President Mahmoud Abbas secured de facto U.N. recognition of Palestinian statehood.

The cut-off was a blow to Abbas who urgently needed the cash to pay public sector salaries at a time of growing financial strain. Officials had warned of possible unrest in the Israeli-occupied West Bank if wage arrears were not covered.

Under international pressure, Israel made a transfer in January and again in February, but said at the time decisions on whether to continue would be made on a month-by-month basis.

Israeli Prime Minister Benjamin Netanyahu’s office on Monday said he had instructed Finance Minister Yair Lapid “to resume the transfers”. A spokesman for Netanyahu said that meant regular monthly payments would be made from now on.

Obama made a three-day visit to Israel and the occupied West Bank last week and called for a resumption of peace negotiations that have been stalled since 2010.

The U.S. President said he wanted to see “steps that both Palestinians and Israelis can take to build trust and confidence upon which lasting peace will depend”.

Palestinians seek a state in the Gaza Strip and the West Bank with Arab East Jerusalem as its capital - territories Israel captured in the 1967 Arab-Israeli War.

Talks have stalled over the issue of Israel’s continued building of settlements for its citizens in the occupied West Bank.

Abbas’s Palestinian Authority exercises limited self rule in the West Bank under interim peace deals.


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!
  • 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?
  • "You wouldn’t send someone for a math test without teaching them math." Why is sex ed still so taboo among religious Jews?
  • Russia's playing the "Jew card"...again.
  • "Israel should deal with this discrimination against Americans on its own merits... not simply as a bargaining chip for easy entry to the U.S." Do you agree?
  • For Moroccan Jews, the end of Passover means Mimouna. Terbhou ou Tse'dou! (good luck) How do you celebrate?
  • Calling all Marx Brothers fans!
  • What's it like to run the Palestine International Marathon as a Jew?
  • Does Israel have a racism problem?
  • 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.