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Israel suspends Palestinian tax payments after UN vote
Sunday December 02, 2012 07:49:55 PM,
RIA Novosti
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Tel Aviv:
Israel is halting tax payments it collects for the Palestinians in
response to their successful bid to raise their UN status, local
media reported Sunday, citing Israeli Finance Minister Yuval
Steinitz.
"I have no intention of transferring the tax payments to the
Palestinian Authority this month. I plan to use them to offset
Palestinian debt to the Israel Electric Corporation," Steinitz
said at the beginning of a weekly cabinet meeting.
"We have said from the beginning that the raising of the status of
Palestine at the UN would produce a reaction from Israel."
A total of 460 million shekels (about $120 million) would be
withheld from the Palestinians, reported the Israeli newspaper
Haaretz.
The move comes after the UN General Assembly recognised last
Thursday the Palestinian Authority (PA) as a non-member observer
state.
The Palestinian bid, submitted by President Mahmoud Abbas, was
approved by 138 UN members, while nine voted against and 41
abstained from voting. The bid faced fierce opposition from Israel
and the US.
The move amounts to an implicit recognition of the Palestinian
statehood and increases PA's chances of joining other UN bodies.
It also allows the Palestinian Authority to challenge the
continuing construction of Israeli settlements on the occupied
Palestinian land in the International Criminal Court.
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