Palestinian president: Israel withholding tax revenue for third month

Palestinian president: Israel withholding tax revenue for third month
Mahmoud Abbas says Israel refuses to hand over another $125m in revenue in reaction to the Palestinian decision to join the International Criminal Court.
1 min read
05 February, 2015
Abbas speaking at the opening of a new TV station in Ramallah [Getty]
Israel has said it will withhold Palestinian tax revenues from the Palestinian government for the third month in a row, according to Palestinian President Mahmoud Abbas.

Speaking at the opening of the Palestinian state TV headquarters in Ramallah on Wednesday, Abbas said Israel's decision was a reaction to the Palestinian decision to join the International Criminal Court.

Palestinian tax revenues are collected by Israel on behalf of the Palestinian Authority (PA), and it receives three percent in return, said Abbas. Palestinians have agreed not to retract their decision to join the ICC in return for the tax money, he said.

Withholding the tax revenues, equivalent to around $125m a month, has caused a severe financial crisis. The money provides around 60 percent of the PA's budget and is used to pay government workers' salaries.

Tens of thousands of civil servants - teachers, doctors, police officers - have been left short over the past two months.

The withholding of Palestinian tax revenue has been sharply criticised by the United States - and even Israeli President Reuven Rivlin.

This article is an edited translation from our Arabic edition.