Israel to release frozen Palestinian tax revenues

Ramallah: The Israeli forum of eight senior ministers on Wednesday approved the transfer of frozen Palestinian tax revenues to the Palestinian National Authority (PNA).

Prime Minister Benjamin Netanyahu's office announced the decision to release the money was made because the Palestinians had suspended "unilateral moves."

Under past peace deals, Israel collects customs duties for the Palestinians and transfers the funds each month. The money is essential for the Palestinian government to pay tens of thousands of workers.

Netanyahu said that Israel would transfer $100 million (Dh368 million) collected in October and would refrain from delaying the transfer of the November tax funds.

A senior Israeli official was quoted in the Israeli media as saying that the Israeli government would consider the withholding of the tax revenues in future should the Palestinians continue their activities at the UN or in the case of the formation of the unity government between Fatah and Hamas.

Speaking to Gulf News, Tayseer Khalid, a member of the PLO Executive Committee, said "so far, we have not been officially informed about the transfer of the Palestinian tax revenues."

"Israel cannot impose any conditions on the Palestinian leadership," he said.

Commenting on possible Israeli future withholding of tax revenues, the PLO rejected the threats and condemned them as acts of piracy.