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Israel to Halt Tax Transfers to Palestinians Israel to Halt Tax Transfers to Palestinians
(5 months later)
JERUSALEM — Israel will halt the monthly transfer of tax revenues it collects on behalf of the Palestinian Authority and use the money to offset Palestinian debts to Israeli utility companies, a government official said late Thursday. JERUSALEM — Israel will halt the monthly transfer of tax revenues it collects on behalf of the Palestinian Authority and use the money to offset Palestinian debts to Israeli utility companies, a government official said late Thursday.
It was the latest and potentially costliest of sanctions imposed by Israel in response to the Palestinian leadership’s application last week to join 15 international conventions and treaties, which the Israelis denounced as a blatant violation of agreements between the two sides.It was the latest and potentially costliest of sanctions imposed by Israel in response to the Palestinian leadership’s application last week to join 15 international conventions and treaties, which the Israelis denounced as a blatant violation of agreements between the two sides.
The Palestinian move came after Israel failed to release a group of Palestinian prisoners by a late March deadline. The dispute has brought the American-brokered talks to the brink of collapse.The Palestinian move came after Israel failed to release a group of Palestinian prisoners by a late March deadline. The dispute has brought the American-brokered talks to the brink of collapse.
The economic measure could deprive the financially fragile Palestinian Authority of hundreds of millions of dollars. Since customs revenues and other levies are generally transferred at the end of the month, the step could also be intended to pressure the Palestinians into returning to the negotiating table.The economic measure could deprive the financially fragile Palestinian Authority of hundreds of millions of dollars. Since customs revenues and other levies are generally transferred at the end of the month, the step could also be intended to pressure the Palestinians into returning to the negotiating table.
Israeli, Palestinian and American officials denied reports a deal had been reached after negotiators met here Thursday. Adding to the complications, Naftali Bennett, the leader of Israel’s right-wing party Jewish Home, threatened to quit the government and dismantle the governing coalition if an eventual agreement included the release of prisoners who are Arab citizens of Israel, as the Palestinians have demanded.Israeli, Palestinian and American officials denied reports a deal had been reached after negotiators met here Thursday. Adding to the complications, Naftali Bennett, the leader of Israel’s right-wing party Jewish Home, threatened to quit the government and dismantle the governing coalition if an eventual agreement included the release of prisoners who are Arab citizens of Israel, as the Palestinians have demanded.
The tax move came a day after Israel directed its ministers and senior officials, excluding the negotiators, to cut off contacts with their Palestinian counterparts other than on security issues.The tax move came a day after Israel directed its ministers and senior officials, excluding the negotiators, to cut off contacts with their Palestinian counterparts other than on security issues.
Israel has halted the transfer of tax revenues before. The last occasion was in late 2012, to punish the Palestinians after their successful bid to upgrade their status at the United Nations to that of a nonmember observer state. Without the revenues, the Palestinian Authority struggled to pay its 150,000 government workers.Israel has halted the transfer of tax revenues before. The last occasion was in late 2012, to punish the Palestinians after their successful bid to upgrade their status at the United Nations to that of a nonmember observer state. Without the revenues, the Palestinian Authority struggled to pay its 150,000 government workers.