Israel has withheld tax revenues collected on behalf of the Palestinian Authority (PA) for the third month in a row, Israeli television reported on Tuesday.
$175 millionIsrael collects every month in taxes on Palestinian imports and exports on behalf of the PA and transfers them after deducting a three-percent service charge
According to the broadcaster, Yoav Mordechai, Israeli government coordinator for the occupied territories, informed the PA that Israel would not be transferring tax revenues collected on the PA’s behalf for the month of February.
Israel collects, on behalf of the PA, around $175 million each month in taxes on Palestinian imports and exports.
After deducting a three-percent service charge, the collected funds are transferred to the Ramallah-based PA.
In January, however, Israel decided to halt the transfer of December tax revenues in retaliation for the PA’s decision to apply for membership in the International Criminal Court with a view to raising a lawsuit against Israel for war crimes.
Last month, the Palestinian government was only able to pay 60 percent of public-sector salaries after borrowing from local banks.
Tax revenue represents the PA’s main source of income.
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