JERUSALEM (JTA) — The Palestinian Authority announced on Friday that it would once again accept tax revenues collected on its behalf by Israel, after having rejected the funds for months.
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According to a report by Reuters, a spokeswoman for Israel’s Finance Ministry said about $430 million would be transferred to the P.A. on Sunday, after understandings were reached between P.A. Civil Affairs Minister Hussein al-Sheikh and Israeli Finance Minister Moshe Kahlon.
In February, Israel said it would begin to deduct from the tax revenues it collects for the P.A. the amount the P.A. pays in monthly stipends to terrorists incarcerated in Israeli prisons, as well as to released terrorists and the families of “martyrs.”
When Israel went through with the deductions, the P.A. refused to accept any of the tax funds, with P.A. leader Mahmoud Abbas insisting that the full tax payments belonged to the P.A. by right according to interim agreements. Israel argued that the “pay for slay” plan encouraged terrorism against Jews.
Last year, the United States drastically cut aid to the P.A., citing its disapproval of monthly salaries to paid to terrorists.
“The agreement was also on transferring a payment from the #PA’s financial dues,” al-Sheikh said on Twitter. “The dispute remains over the salaries of the families of #prisoners and #martyrs. We are determined to pay their dues at all costs.”
Tax transfers are said by the P.A. Finance Ministry to comprise approximately half of the P.A. budget.