Israel unfreezes Palestinian tax funds

Israel unfreezes Palestinian tax funds

2011-12-01 08:06:30 GMT+7 (ICT)

JERUSALEM (BNO NEWS) -- Israel on Wednesday decided to release millions of dollars in Palestinian tax revenues it had previously frozen as punishment for Palestinian efforts to gain statehood recognition at the United Nations.

Despite the vocal opposition of Foreign Minister Avigdor Lieberman, Prime Minister Benjamin Netanyahu's top cabinet ministers approved the handover of $100 million in tax money to the Palestinian Authority. Lieberman wanted to hold the money because it can be used by a Palestinian unity government that would include Hamas.

The decision was taken by a forum of eight senior ministers, the Haaretz newspaper reported. Israel will now transfer the withheld October tax funds as well as refrain from delaying taxes collected for the month of November.

Netanyahu said he decided to go back on his decision to freeze the tax money due to the suspension of Palestinian activities at the United Nations. However, a senior Israeli official said that Netanyahu's cabinet would consider freezing tax collection funds in the future if the Palestinians continue unilateral attempts for recognition at the United Nations.

Israel withheld the tax money in protest of Palestine's admission to the UN's cultural organization, UNESCO, on October 31. Israel also opposes the efforts to reconcile between the ruling party Fatah and the Hamas organization, which is in control of the Gaza Strip.

The salaries of more than 150,000 public servants could not be paid without the tax money.

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