Olmert in Cabinet
צילום: איי אף פי
Israel to transfer tax funds to Palestinians
Cabinet approves transfer of tax funds collected on behalf of Palestinians to Palestinian Authority in bid to bolster Abbas
The Cabinet voted Sunday in favor of transferring withheld taxes to the Palestinian Authority as part of Israel's efforts to bolster PA President Mahmoud Abbas.
The government wants to transfer, over a six-month period, some $400 million in taxes collected on behalf of the Palestinians over the last one-and-a-half years.
The international community imposed a financial embargo on the Palestinian Authority last January after Hamas' election victory. Hamas rejected demands to recognize Israel, renounce violence and accept past agreements with Israel as conditions to lift the embargo.
Israel decided to freeze the tax funds for fear that Hamas would use them to fund terror activities.
The first installment will be transferred to Palestinian government accounts today.
The international community decided to lift the embargo three weeks ago when Abbas dismissed a Hamas-led unity government after the Islamic group's violent takeover of the Gaza Strip.
Abbas appointed Salam Fayyad, a western-backed economist, to form an emergency government of technocrats.
