Israel has decided to withhold 600 million shekels ($176 million) of the tax revenue it collects for the Palestinian Authority to offset the latter’s compensation for “strikers” against the Jewish state.
Israel’s security cabinet voted to phase out the same amount of tax revenue that the Palestinian Authority has paid to the families of slain or wounded attackers, state-owned Kan TV was quoted as saying by Xinhua news agency.
Israel sees the salaries as “indirect support for terrorism” and accuses them of “encouraging” Palestinian attacks against Israelis.
However, Palestinians say the salaries are welfare payments for needy families, the report added.
Israel collects a large portion of tax revenue on behalf of the Palestinian Authority and regularly transfers it to the latter.
In July 2018, the Israeli Parliament passed a law to deduct from tax revenue an amount equal to what the Palestinian Authority pays to the families of prisoners.
This action is expected to increase tensions between Israel and the Palestinian Authority.
Israel captured the West Bank and Gaza Strip in a 1967 war and has since controlled or blockaded both regions despite international criticism.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a shared source.)