Press Esc to close
Saturday 05 September 2015
News updated at 1:04 PM IST
Weather
Max: 31.7°C
Min : 21.3°C
In Bengaluru
Sunny day

Israel axes funds to Palestine

Jerusalem, Dec 2, 2012, PTI:

$115 m withheld to punish Abbas administration over UN vote

Upset at Palestinians’ successful UN bid, Israel on Sunday said it would withhold nearly $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.

Angered by the successful attempt by the Palestinians to seek non-member observer status at the UN, Tel Aviv has already decided on expansion of its settlements On West Bank, including promoting a construction project in a controversial area that could effectively divide the occupied territory into two parts.

Israel’s cabinet 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 confiscation of funds totalling NIS 460 million (about $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 said on Sunday at the 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.

At the start of the weekly cabinet meeting, Israel’s hawkish prime minister justified his punitive response against the Palestinians over the UN approval. Netanyahu emphasised that Israel “will continue to build in Jerusalem and in all the places of the State of Israel’s map of strategic interests”.


Go to Top

Photo Gallery
People travelling on the roof a passenger train to particapte in Janmashtami festival in Mathura...

People travelling on the roof a passenger train to particapte in Janmashtami festival in Mathura...

Sachin Tendulkar attends the Isha Gramothsavam, a rural revitalization programme in Coimbatore...

Sachin Tendulkar attends the Isha Gramothsavam, a rural revitalization programme in Coimbatore...

Forest officials welcome first batch of Dasara elephants...

Forest officials welcome first batch of Dasara elephants...

Traditional Yakshagana artist performs dance...

Traditional Yakshagana artist performs dance...

People buying Lord Krishna idols on the eve of Sri Krishna Janmashthami...

People buying Lord Krishna idols on the eve of Sri Krishna Janmashthami...

A view of heavy traffic jam on Delhi-Gurgaon Expressway in Gurgaon on Friday...

A view of heavy traffic jam on Delhi-Gurgaon Expressway in Gurgaon on Friday...

One horned rhinoceros at a submerged area of the Kaziranga National Park in Assam...

One horned rhinoceros at a submerged area of the Kaziranga National Park in Assam...

Students from various parts of Karnataka perform Group Dance during the Samskrutika Habba...

Students from various parts of Karnataka perform Group Dance during the Samskrutika Habba...

Chennai- Mangalore Express derailment...

Chennai- Mangalore Express derailment...

Ducks on top of a submerged house in a flood affected village near Kaziranga...

Ducks on top of a submerged house in a flood affected village near Kaziranga...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523