Sources: Israel considers giving PA half of withheld tax revenues
Israel could transfer $300- $400 million in phases through mechanism ensuring none of the money goes to Hamas.
By ReutersIsrael is considering returning up to half of the tax revenues it has been withholding from the Palestinians as part of a United States-led effort to bolster Palestinian Authority Chairman Mahmoud Abbas, Israeli sources said Tuesday.
Israel could transfer as much as $300 million to $400 million in phases, through a mechanism that would guarantee none of the money would be handled by the Hamas-led government or militants, the sources said.
Israel started withholding the tax revenues, which it collects on the Palestinian Authority's behalf, after Hamas Islamists defeated Abbas's secular Fatah faction in parliamentary elections in January 2006.
Coupled with a ban on direct Western aid, the sanctions have pushed the Hamas-led Authority to the brink of financial collapse and have prevented the government from paying full wages to its work force.
Prime Minister Ehud Olmert was expected to meet on Thursday with Abbas and has been under heavy U.S. and European pressure to take confidence-building steps to revive long-stalled peace talks between Israel and the Palestinians.
It is unclear whether a decision on the tax funds will be made in time for the Abbas meeting or before Olmert travels to Washington for talks on June 19 with U.S. President George W. Bush.
"It is being considered but it has not been decided yet," a senior Israeli source involved in the matter said.
Another Israeli official said the funds would be earmarked for "humanitarian" purposes and any transfers could be carried out in phases over the course of several months.
Palestinian officials estimate that Israel is withholding some $700 million in Palestinian tax revenues.
But Israeli officials estimate that only $300 million to $400 million of that could be transferred to the Palestinians because the rest of the money has been frozen by court orders.
Details were not immediately available. Officials said the orders were issued apparently in response to compensation demands from Israeli companies owed money by the Palestinian government or from families of Israelis killed by militants.
It is unclear how soon any money could be released to Abbas or to a Palestine Liberation Organization (PLO) account controlled by Palestinian Finance Minister Salam Fayyad.
In a break with Israel, Washington has sought to bolster Fayyad despite his leading role in the unity government led by Hamas Islamists. With U.S. backing, Fayyad has started making partial payments to government workers through the PLO account.
Some Israeli officials decried what they saw as a shift in U.S. policy that would reduce pressure on Hamas to recognize Israel, renounce violence and accept interim peace deals.
Olmert has long resisted European calls to transfer Palestinian tax revenues to stave off collapse of the Palestinian Authority and bolster Abbas, whose Fatah faction has been locked in a power struggle with Hamas.
But Israel finds itself increasingly isolated on the money issue. The United States joined the EU, UN and Russia in a statement last week encouraging Israel to consider freeing up the funds through a European Union mechanism that provides direct payments to Palestinian government workers.
Israel has so far balked at using the EU aid mechanism, saying additional safeguards were needed.
Olmert last met Abbas on April 15 as part of U.S.-brokered talks that were supposed to take place every two weeks and focus on aspects of a future Palestinian state.
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Is this money earning interest? If not, why not? This treating of municipal tax revenues as part of a carrot and stick approach towards the Palestinians is reprehensible. If the shoe was on the other foot, how would Israelis respond? If you say the Palestinians would not respond as forcefully, then you've practically ensured their perception that they must at least match an Israeli level of determination and fortitude.
If Shalit could cost $700M, how much will these 10.000 and mounting Pals. Prisoners will cost?? PLEASE do give back was is NOT yours, (The MILLIONS and the CONQURED TERRITORIES), and you will find out that PEACE will follow, unless you DO NOT WANT PEACE.
......"the history of the conflict,...the fact that every war....was started by the Arab.??", U 2 must read the right book, most wars were preempted wars,GOT IT. So do us a fovor try to read the right books too, especially the Memoires of Gen Moshe Dayan.
How much interest has the Palestinian tax money accumulated. Will it also be paid to the Palestinian people?
Typical behavior from a thieving state. Just like a guy who bests an old lady and steals her last $10, and then gives her back $5 and expects a medal.
Kick this goverment out NOW they are agents and puppets of the United States and the EU. They are idiots
i wonder what it would be like to have people like you as neighbours? Use your hate-filled heads! What would happen if you carried on starving the Palestinians? Do you think they will just go quietly? Why don;t you pay them to go like you did the hitnachluyot from Gaza. And don't forget your 26 million Shekels the US pays you in cash transfers each and every day. Why are 42% of your citizens living below the poverty line?
What do you think a Qassam is worth? Start with a clean slate. All outsatnding money owed to the Palestinians is used to rebuild Sderot. From now on, for every Qassam launched into Israel, deduct $250,000 from any amount owing - after expenses to repair any damage. I doubt these morons are smart enough to learn their lesson but it sure beats handing them money to build more Qassams.
ralph, alan, Ray, rapahel, Mark, תהיו ברוכים. Hashem bless all of you! F human, Natallie, and joe.
Let's start with the rent Israel fails to pay for occupied non-Israeli territory, compensation for confiscated Palestinian homes in Israel and damaged Palestinian property in WB and GS, fines for insulting the Palestinian cousin etc. etc.
Unsophisticated and simplistic is your view. Uneducated as well. Who would take candy from a laughing baby's mouth? Except islamists who do it to buy guns.
You clearly have no grasp of the history of the conflict, including the fact that every war involving Israel since its inception was started by Arab. And, much to your dismay, won by Israel. Read a book, and get back to us before you acuse Israel of facism and terrorism and the like. So far, you've only succeeded in embarrassing yourself.
"I am confused" obviously !
Please, marry each other. Then you can have fun. Human will use words he doesn't understand, like Goyim. He will try to figure out whether to say Israel or Jew (based on with which he can be more offensive) and Natalie will do her amazing interpretations of "what actually happened (according to Durson). You could honeymoon in Iran and learn about the Holocaust and then move permanently to Syria so Meshaal can teach you exactly what Hamas has in mind for the Jews and, best of all, you will have met right here, thanks to Haaretz, the Israeli paper that publishes more pure Jew-hate than Joseph Goebbels ever could muster in his best days.
I agree with you. In addition, for each day of Shalit captivity a large amount should be withold, and given as a compensation to him and his family.
It's insane that the Israeli tax payer has to compensate for the damages caused by the PA (rockets in Sderot and so on). US pushed Libya to pay for Lockerbie, why Israel won't do the same towards the PA ? Compensations towards the victims of terror should be paid by the criminals, as in any normal state enforcing the law. Israel would gives back money to an institution who openly bombs Israeli cities, tries everyday to send suicide bombers, to please who exactly ?
It seems that a huge chunk of Israelis are dark-minded fascists who advocate theft. The money belong to the Palestinian people...not to the Jews. Or perhaps some Jews think all that the goyem own also belongs to the Jews. I am confused. As to terror, who under God's sun can possibly vye with Israel with regard to terror?
Why on G-d's green earth would you give money to a group of people who are dedicated to your destruction? Give back Gilad Shalit and put down your weapons. Let's start there. If not, use this tax money to pay for completing the suicide prevention wall and new technologies for the IDF. The Palis have proven their intent over and over and over. Wake up, Israel.
or no $$$
Hamas was created to oppose Israel and to take back the land of Palestine. Whether they will be successful in the end is open to debate. One thing is sure though. Hamas will never recognize Israel. Israel understands this, as they do not recognize Hamas either. This is simply a "humiliation" tactic which is a waste of time. In spite of the efforts of Hamas, Hizbollah, Iran, and Syria, Israel remains her own worst enemy. Recently, Hamas offered a one year truce in Gaza and the west bank which Israel declined. Israel has been withholding the Palestinians money and now will allocate part of it to be used in sectarian violence among the Palestinains. Israel doesn't want recognition from Hamas, they want Qassams, and thats what they are getting.
it is the result of weak leadership
Netherlands, I guess Israel and the United States now must be considered anti-semittic, too. $10 M from Norway, $300-400 M from Israel. Hmm.
If a foreign nation controls funds belonging to another nation , this would be considered " an act of war". Why do the israelis think that they can collect taxes , hold the money and do not consider that a serious provocation to the Palestinians. One provocation against many like restriction of water supply , land ownership , basic freedonms. If the Israelis face the same restrictions , they will be shooting more than Kassams.......
Wouldn't it be more honorable to first give the tax money to the town of Sderot to rebuild the properties, public and private destroyed by Palestinian rockets..OH NO !! That wouldn't be politically correct.. Sickening.
Wouldn't it be more honorable to first give the tax money to the town of Sderot to rebuild the properties, public and private destroyed by Palestinian rockets..OH NO !! That wouldn't be politically correct.. Sickening.
this is asbsolutely disgusting ! Palesinians lob rockets into Israel on a daily basis and Israel negotiates. NOT A DIME !
the WW2
Where is shalit ?
What ever monies the israelis collect from the pals, they should first deduct the cost of the kassams to people and property and the cost of the security and cost to reinforce people and businesses homes...Whatever left hold it till Shallit is released