Amid EU Criticism, Israel Withholds Tax Revenue in Response to PA Debt

December 13, 2012 12:04 pm 0 comments

Israeli Finance Minister Yuval Steinitz. Photo: Beit Hashalom.

The Israeli Finance Ministry announced on Wednesday that 435 million shekels ($115 million) that were to be transferred to the Palestinian Authority (PA) in December would be used to compensate the Israel Electric Corporation for the more than 600 million shekels ($160 million) it is owed by the Palestinians.

The move comes a day after Foreign Minister Avigdor Lieberman said Israel would stop transferring tax revenues collected on behalf of the PA until at least March, in response to its statehood campaign at the United Nations last month, Israel Hayom reported.

In a statement on its website, the European Union insisted this week that Israel process its tax transfer to the Palestinians, because “Contractual obligations… regarding full, timely, predictable and transparent transfer of tax and custom revenues have to be respected.” At the same time, most EU countries—by voting in favor of “Palestine” as a nonmember observer state at the UN Nov. 29—approved a violation of the Palestinians’ contractual obligation to reaching a final status agreement with Israel through negotiations, according to the 1993 Oslo Accords.

Israel collects some $100 million a month in duties on behalf of the Palestinian Authority because the latter lacks its own facilities to handle overseas imports. The Hamas-controlled Gaza Strip is highly dependent on the Israeli grid because it lacks sufficient infrastructure to generate enough power on its own.

“The Palestinians can forget about getting even one cent in the coming four months, and in four months’ time we will decide how to proceed,” Foreign Minister Avigdor Lieberman said in a speech on Tuesday night. “Israel is not prepared to accept unilateral steps by the Palestinian side, and anyone who thinks they will extract concessions this way is wrong,” he said.

Left-wing Meretz party Member of Knesset Zahava Gal-On, however, said the tax funds “do not belong to the State of Israel but to the residents of the Palestinian Authority; the finance minister and the prime minister have overstepped their authority in a most egregious manner.”

Leave a Reply

Please note: comments may be published in the Algemeiner print edition.


Current day month ye@r *

More...

  • Jewish Identity Sports Cycling the Desert: New Israel Bike Trail Connects Mitzpe Ramon to Eilat

    Cycling the Desert: New Israel Bike Trail Connects Mitzpe Ramon to Eilat

    As the popularity of cycling continues to increase across the world, Israel is working to develop cycling trails that make the country’s spectacular desert accessible to cyclists. The southern segment of the Israel Bike Trail was inaugurated on Feb. 24 and offers for the first time a unique, uninterrupted 8-day cycling experience after six years of planning and development. The southern section of the Israel Bike Trail stretches over 300 kilometers in length and is divided into eight segments for mountain biking, [...]

    Read more →
  • Jewish Identity Theater Forthcoming Major Action Movies Inspired by Jewish Comic Artist Jack Kirby

    Forthcoming Major Action Movies Inspired by Jewish Comic Artist Jack Kirby

    JNS.org – With the recent Oscars in the rearview mirror, Hollywood’s attention now shifts to the rest of this year’s big-screen lineup. Two of the major action films coming up in 2015—Avengers: Age of Ultron, which hits theaters in May, and the third film in the Fantastic Four series, slated for an August release—have Jewish roots that the average moviegoer might be unaware of. As it turns out, it took a tough Jewish kid from New York City’s Lower East [...]

    Read more →
  • Book Reviews Jewish Identity When Torah Teaches Life and Life Teaches Torah (REVIEW)

    When Torah Teaches Life and Life Teaches Torah (REVIEW)

    JNS.org – Rabbi Gordon Tucker spent the first 20 years of his career teaching at the Conservative movement’s Jewish Theological Seminary (JTS) and the next 20 years as the rabbi of Temple Israel Center in White Plains, N.Y. I confess that when I heard about the order of those events, I thought that Tucker’s move from academia to the pulpit was strange. Firstly, I could not imagine anyone filling the place of my friend, Arnold Turetsky, who was such a talented [...]

    Read more →
  • Arts and Culture Blogs Oscars 2015: Reflecting on Love at First Sight

    Oscars 2015: Reflecting on Love at First Sight

    JNS.org – I’m in love, and have been for a long time. It’s a relationship filled with laughter, tears, intrigue, and surprise. It was love at first sight, back when I was a little girl—with an extra-terrestrial that longed to go home. From then on, that love has never wavered, and isn’t reserved for one, but for oh so many—Ferris Bueller, Annie Hall, Tootsie, Harry and Sally, Marty McFly, Atticus Finch, Danny Zuko, Yentl, that little dog Toto, Mrs. Doubtfire, [...]

    Read more →
  • Blogs Book Reviews Examining America’s First Foray into the Middle East (REVIEW)

    Examining America’s First Foray into the Middle East (REVIEW)

    At the turn of the 21st century through today, American involvement in Middle Eastern politics runs through the Central Intelligence Agency. In America’s Great Game: The CIA’s Secret Arabists and the Shaping of the Modern Middle East, historian Hugh Wilford shows this has always been the case. Wilford methodically traces the lives and work of the agency’s three most prominent officers in the Middle East: Kermit “Kim” Roosevelt was the grandson of president Theodore Roosevelt, and the first head of [...]

    Read more →
  • Relationships US & Canada Seniors at Los Angeles Jewish Home Give Witty Dating Advice Ahead of Valentine’s Day (VIDEO)

    Seniors at Los Angeles Jewish Home Give Witty Dating Advice Ahead of Valentine’s Day (VIDEO)

    Residents of the Los Angeles Jewish Home give dating advice to a young Jewish man in a comedic video posted Monday on YouTube just in time for Valentine’s Day. Jonathan, an associate at the Jewish home, quizzes the senior citizens on an array of topics including having sex on the first date, kissing a girl, who should pay for dinner and whether online dating is a good idea. When the 28-year-old asks a male resident named Lee about his experiences [...]

    Read more →
  • Arts and Culture Jewish History Kutsher’s Documentary an Amazing, and Tragic, Look at the Past (REVIEW)

    Kutsher’s Documentary an Amazing, and Tragic, Look at the Past (REVIEW)

    Anyone who spent time in the Jewish Catskills hotels – especially those like me, who returned for decades – must see the new documentary,”Welcome to Kutsher’s: The Last Catskills Resort.” Not only will the film transport you back to the glory days of your youth and thousands of memories, but it will also make you long for a world that is now lost forever. I returned to Kutsher’s one last time in the summer of 2009, but by then, the [...]

    Read more →
  • Education Jewish Identity Lifestyle Riding the Wave of Change in Part-Time Jewish Education

    Riding the Wave of Change in Part-Time Jewish Education

    JNS.org – Amid the numerous studies and analyses regarding Jewish American life, a simple fact remains: part-time Jewish education is the most popular vehicle for Jewish education in North America. Whenever and wherever parents choose Jewish education for their children, we have a communal responsibility to devote the necessary time and resources to deliver dynamic, effective learning experiences. The only way we can do this is by creating space for conversations and knowledge-sharing around innovative new education models. That also [...]

    Read more →



Sign up now to receive our regular news briefs.