Times of Israel
Israel to hold back NIS 450 million in tax revenues to PA
Israel will withhold NIS 450 million in tax revenues that were to be transferred to the Palestinian Authority and use the money to offset debts to Israel, Israel’s finance minister said Sunday.
The move will likely be seen as a punitive measure against the Palestinians for their successful bid Thursday to upgrade their status at the United Nations to nonmember observer state.
Finance Minister Yuval Steinitz confirmed that he would hold back NIS 450 million to offset a NIS 800 million debt owed by the PA to the Israel Electric Corporation.
Israel had threatened before the vote to take measures against the Palestinians, listing the withholding of tax money to offset the electricity debt as an example. The approval of 3,000 housing units in East Jerusalem and the West Bank over the weekend was also seen as a response to the UN upgrade. That move has been widely condemned as damaging the peace process
The Palestinian Authority owes over NIS 1 billion to Israel, according to Israel Radio.