Israel freezes PA tax revenue as part of sanctions against reconciliation deal

Israeli government decided to deduct more money from the taxes it collects on behalf of the Palestinian Authority (PA) as part of sanctions it imposed in the wake of the Hamas-Fatah unity deal, Israeli and Palestinian sources said on today.

Israel collects taxes on goods intended for the West Bank and the Gaza Strip on behalf of the PA worth half a billion shekels every month. Palestinian sources said Israel regularly deducts 100 million shekels (£17.15 million) for Palestinian debts to the Israeli Electric Corporation.

In response to the PA’s bid to join international organisations and conventions, as well as agreeing a reconciliation deal with Hamas, Israel has raised deductions to 132 million (£22.64 million) as part of economic sanctions.

The Israeli newspaper Yedioth Ahronoth said that news of the economic sanctions would strain Israeli relations with the US.

Yedioth Ahronoth published a list of expected Israeli sanctions against the Palestinians in the West Bank and the Gaza Strip:

1. The authorisation for installing a 3G cellular network in the West Bank would be cancelled.
2. The authorisation for extending the activities of Palestinian mobile network Wataniya Mobile would be cancelled.
3. No meetings at the ministerial or ministry director general level would be allowed to take place between Israelis and their Palestinian counterparts.
4. A freeze in a programme which was expected to see some 14,000 dunam in area C turned into Palestinian agriculture lands.
5. A freeze in deep water drilling in the Gaza Marine gas field.
6. A freeze in the transfer of funds belonging to Palestinians held in Israeli banks.
7. Harming the freedom of movement enjoyed by senior Palestinian politicians and businessmen who have VIP passes.