And, since Israel has abrogated the tax and monetary agreement, there is no further purpose for staying with a regressive VAT tax anyway. Repeal the tax and collecting it becomes illegal and an even bigger PR problem for the current Israeli government. Even US Republicans will be hard-pressed to endorse collection of a repealed tax. Of course the biggest consequence is that without pay, the PA might just send all their employees home, especially those reining in Hamas in the West Bank. Israel would then have to do its own policing and occupation work.
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U.S. regains Hellfire air-to-ground missile from Cuba (Reuters)
from the article: Israel to continue freeze on Palestinian tax money, says senior official