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Palestinian Finance Minister Salam Fayyad. (Reuters) Last update - 17:04 08/06/2008 Palestinian salaries delayed as Israel blocks payments By Reuters Tags: Finance Ministry  The Palestinian Authority has delayed paying its workers this month after Israel withheld tax funds in anger over Palestinian attempts to block upgraded European Union-Israeli ties, officials said on Sunday. A senior Palestinian official said the aid-dependent Palestinian government in the occupied West Bank had expected to receive tax revenues on June 2 that Israel collects on its behalf and had planned to pay salaries two days later. "As of today, we have not received the tax money, so we failed to pay the salaries," the official said. Advertisement A senior Israeli official said the Finance Ministry had since approved the transfer but would deduct about a quarter of the NIS 250-million payment to cover Palestinian Authority debts to Israeli utilities. The delay and the deduction, the Israeli official said, came in response to Palestinian Prime Minister Salam Fayyad's lobbying of the European Union against upgrading its relations with Israel. In a letter to the EU dated May 27, Fayyad accused Israel of "flagrant disregard" of Palestinian rights by continuing to build Jewish settlements in the West Bank and refusing to remove checkpoints which hamper economic development. Fayyad urged the EU not to upgrade its relations with Israel until it "abides by international and human rights laws", including freezing settlement activity. He also called on the Organization for Economic Cooperation and Development to deny Israel membership because of its continued settlement expansion. The senior Palestinian government official said the Palestinian Authority "would not be able to pay all salaries if Israel deducts any amount from the Palestinian tax revenues". The money is the main source of funding for the Palestinian Authority's budget and is used to pay salaries for more than 165,000 government employees in the West Bank and Gaza Strip. Israel had told Fayyad's government that it was delaying the transfer of the tax funds for technical reasons. But Prime Minister Ehud Olmert hinted to President Mahmoud Abbas during their last meeting he would tell his finance minister to stop the payments to protest against Fayyad's move. "Olmert's complaints about Fayyad's letter took up most of the meeting with President Abbas. He was very angry but the president responded that Israel must stop illegal settlement building to give peace a chance and to help Fayyad's economy improve the economy," one senior Palestinian official said. Last week, Israel announced plans to build nearly 900 new homes in areas of the West Bank. Related articles: Olmert to Abbas: PA bid to curb our Europe ties 'unacceptable' PA negotiator: Only a miracle will bring peace by the year's end Fayyad: Israel shouldn't celebrate independence until peace deal signed Bookmark to del.icio.us   Marketing ploy Israeli satellite TV has a new star - Mahmoud Ahmadinejad. Through her lens Madonna's next project: documentary about the Israeli-Arab conflict.   1.   Israeli-controlled Palestinian "Judenrate" 17:23  |  Khaled 08/06/08   2.   just a note 17:39  |  potobac 08/06/08   3.   FAYAAD KNIFE IN ISRAELS BACK! 17:40  |  dav zee 08/06/08   4.   Business with SOBs should be on COD basis 17:46  |  Pervert 08/06/08   5.   Business with SOBs should be on COD basis 17:47  |  Pervert 08/06/08   6.   Enough already 17:47  |  Sylvie 08/06/08   7.   we do because we can 17:53  |  rm 08/06/08   8.   Khaled-You left out the most important thing of all! 18:26  |  Albert 08/06/08   9.   Cut off all money until peace treaty signed and implemented 18:31  |  Realist 08/06/08   10.   Khaled re "Judenrate" 18:55  |  Pervert 08/06/08   11.   Pay all Israeli terrorism claims out of PA "withheld tax" 18:56  |  Dr. L. Brnd 08/06/08   12.   Israel gives Fatah tax money which is used to pay Hamas Salary 19:13  |  Jabadini 08/06/08   13.   No chance for a resolution of the conflict. 19:19  |  Jean Van Daem 08/06/08   14.   Why Israel collects taxes from population of contested 19:22  |  17 08/06/08   15.   17, #11 because you do not bother to read about this. 19:31  |  Mark Anthony 08/06/08   16.   17, #11 because you do not bother to read about this. 19:31  |  Mark Anthony 08/06/08   17.   #1 Khaled, you could have a tea party 19:56  |  Aphemia 08/06/08   18.   use the tax money to fund IDF operatoins against terror 20:04  |  vik 08/06/08   19.   Reminds on something ..... 20:16  |  Keops 08/06/08   20.   Fayaad is upset...... 20:21  |  Malone 08/06/08   21.   Routine harrassment from Israel 21:31  |  Natallie Durson 08/06/08   22.   Jews have no conscience! 21:58  |  Le 08/06/08   23.   Payment not forthcoming 22:05  |  sabra 08/06/08   24.   Sylvie from Holon # 5 22:19  |  northern neighbor 08/06/08   25.   # 16 Mark Anthony - I sincerely do not understand 22:29  |  17 08/06/08   26.   what an ugly behaviour! 22:48  |  ClearCut 08/06/08   27.   Israel should stop to serve PA. as their tax collector 23:48  |  17 08/06/08   28.   And the quislings still go with begging bowl to the Crime 00:53  |  lakshmi 09/06/08   29.   Iran can help release palestinian tax funds 01:02  |  Aounist 09/06/08   30.   Israel`s stupid move validates Fayyad`s EU position... 02:56  |  BBSNews 09/06/08   31.   Zionist demonism. 03:10  |  Maureen Ann 09/06/08   32.   Israel serves PA as a tax colleector 03:56  |  17 09/06/08   33.   Aoun why are you obsessed with Iran 07:19  |  Joe Frazier 09/06/08   34.   For every kassam 07:20  |  real vision 09/06/08   35.   Slap my hand, BNig Daddy! 07:45  |  Jim 09/06/08   36.   Natalie-"That Has Been Changing" allright... 08:02  |  Albert 09/06/08   37.   #14 17 Explanation 08:08  |  Jim 09/06/08   38.   #21 Natalie Durson 08:26  |  Jim 09/06/08   39.   #22 Le 08:38  |  Jim 09/06/08   40.   Colllective punishment takes many forms. 08:44  |  Maki 09/06/08   41.   Khaled # 1. 11:44  |  David Nigel Braham 09/06/08   42.   Payment of Pals salary -Condition of cessation of 12:39  |  The Archives 09/06/08   43.   Add to the reduction of Pal salary 12:58  |  The Archives 09/06/08   44.   # 37 Jim - You are not clear in this regars: 13:14  |  17 09/06/08   45.   #30 BBS News (Brats Busybodies Secular News) 13:15  |  Magnify 09/06/08   46.   #30 BBS News (Brats Busybodies Secular News) 13:26  |  Magnify 09/06/08   47.   Olmert extortion and theivery to silence Abbas 23:08  |  American in NY 09/06/08   48.   #44 17 tries to act dumb...... 15:11  |  Johnboy 10/06/08   49.   Johnboy, # 48 I am not sure it is an act 14:47  |  American in NY 11/06/08

Read & React Palestinians: IDF kills girl, gunman in Gaza; Negev man wounded by mortar Responses: 69 Editorial: No good reason for broad IDF Gaza operation Responses: 33 Haniyeh aide: Hamas expects gesture in exchange for Shalit letter Responses: 47 TV: IDF reservists complain their service consists of babysitting young settlers Responses: 18 Alexander Yakobson: Religious rites not needed to join the Jewish people Responses: 18 Rosner's Domain Lieberman for VP? Only 18% want it (WTR) On a par with the policies of President Bush Threatening Iran is wrong (WTR) Poll: Philip Roth, Victor Frankl or Leon Uris? Obama and Jerusalem: did you really believe him? More Headlines 14:15 Israel: No Gaza raid, we're giving cease-fire talks chance to succeed 14:34 Treasury announces plan for sharp income tax cuts by 2015 13:34 Ahmadinejad: West failing to halt our nuclear victory 14:50 Palestinians: IDF kills 3 in Gaza; Negev man wounded by mortar 12:49 Despite Egypt snub, Syria is returning to the Arab fold 13:48 U.S. kosher meat prices likely to soar after raid on Iowa plant 14:35 Self-defense bill for homeowners passes two readings in Knesset 14:29 Report: Stalker sends sexually explicit letters to woman MKs 12:53 Education Council: We won't recognize degrees awarded by college in West Bank settlement 12:48 Police suspect Taibeh man murdered 22-year-old as part of 'blood feud' 10:18 Olmert facing mounting pressure to set date for Kadima primaries Previous Editions Select Day 10 jun 09 jun 08 jun 06 jun 05 jun 04 jun 03 jun 02 jun 01 jun 30 may 29 may 28 may

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