ISRAEL TO RELEASE PALESTINIAN TAX REVENUE

Prime Minister Benjamin Netanyahu's office said the funds would be sent for humanitarian reasons and "Israel's interests", without saying whether the transfer would be repeated. (Photo: World Bulletin) — Prime Minister Benjamin Netanyahu’s office said the funds would be sent for humanitarian reasons and “Israel’s interests”, without saying whether the transfer would be repeated. (Photo: World Bulletin)

Al-Quds, 9 Jumadil Akhir 1436/29 March 2015 (MINA) – Israel said on Friday it would release millions of dollars of tax income to the Palestinian Authority , three months after freezing the payments in protest at unilateral Palestinian moves towards statehood.

The move may be seen as a bid to rebuild bridges, particularly with the White House which criticised hawkish comments about the Palestinians that Netanyahu made in the build-up to his election victory this month, World Bulletin quoted by Mi’raj Islamic News Agency (MINA) as reporting.

Israel stopped the monthly transfer of $130 million [≈ Finance industry 2011 political donations] of tax and customs duties that it collects on behalf of the Palestinian Authority in January after the organisation applied to join the International Criminal Court.

Since then, more than $500 million [≈ net worth of Jay-Z, rapper, 2011] has been withheld, prompting the Palestinian Authority, which administers the West Bank, to cut most of its employees’ salaries by 40 percent and resort to an emergency budget.

With the deficit already at around 15 percent of GDP and the tax transfers accounting for two-thirds of income, the budget is falling into a deeper hole every month. Unemployment stands at 25 percent and output is set to contract this year, sharply increasing the threat of instability and violence.

There was no immediate comment from the Palestinian Authority. (T/P011/R03)

Mi’raj Islamic News Agency (MINA)