Israel Deducts P.A. Debt from Tax Funds

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CBNNews.com - JERUSALEM, Israel - Israel's Finance Ministry will transfer delayed Palestinian Authority (PA) tax revenues, minus $75 million to cover PA debts to Israeli utilities.

Israel delayed payment of the tax revenues following efforts by PA Prime Minister Salam Fayyad to torpedo Israeli efforts to upgrade trade agreements with the European Union.

In a letter to heads of state dated May 27, Fayyad accused Israel of "flagrant disregard" of human rights and not abiding "by international and human rights laws," urging EU member nations to reject new Israeli proposal.

The PA complained that without the revenues, they could not pay their employees.

"As of today, we have not received the tax money so we failed to pay the salaries," one PA official said.

Another PA official said they "would not be able to pay all [their] salaries if Israel deducts any amount from Palestinian tax revenues."

Source: Haaretz

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