Upset at Palestinians’ successful UN bid, Israel today said it will withhold nearly USD 115 million in taxes and other funds it collects for the cash-strapped Palestinian Authority. Israel said the money would be used to offset the debt Palestinians owe to Israel’s Electric Corporation. Israel’s cabinet today also unanimously decided to reject the UN decision to upgrade Palestine’s status stating that the UN General Assembly decision “will not serve as the basis to future negotiations with the Palestinian Authority and it cannot advance a peaceful solution”. The announcements came close on the heels of its expansion of settlements including promoting a construction project in a controversial area that could effectively divide the West Bank into two parts. The confiscation of funds totalling NIS 460 million (about USD 115 million), which are utilised for paying salaries to PA officials, does not come as a surprise as Israel had warned of the move ahead of the UN vote. “I have no intention of transferring the tax payments to the PA this month. I plan to use them to offset the Palestinian debt to the Israel Electric Corporation,” Israel’s Finance Minister Yuval Steinitz today said at the weekly cabinet meeting. Steinitz referred to the Palestinian UN bid as a “provocation and an attempt to further a state without recognising Israel, demilitarisation or any security arrangements.” In November, when the Palestinian leadership was still mulling over the UN option, he had said “If the Palestinians continue to advance their unilateral move they should not expect bilateral cooperation. We will not collect their taxes for them and we will not transfer their tax revenues.” On Thursday, Palestinians won a virtual approval from the world for their longstanding quest for statehood with an overwhelming support at the UN General Assembly that isolated Israel and the US. India, which co-sponsored the resolution, was among the 138 countries that voted in favour of the Palestinian request for upgrading its status to non-member observer state from its current entity status at the 193 member world body. PTI
