The office of Palestinian Authority President Mahmoud Abbas warns that they will disband the PA if the Israeli cabinet keeps the deducted 500 million shekels ($140m) from the Palestinian Authority, due to its uncompromising policy of paying monthly stipends to convicted terrorists and their families.
By Daniel Siryoti & Israel Hayom Staff
Israel has one week to reinstate funds it has deducted from the taxes it collects on behalf of the Palestinian Authority, otherwise, the PA will seek to reopen the Paris Protocol, the office of Palestinian Authority President Mahmoud Abbas warned in a statement Wednesday.
The Paris Protocol was an amendment to the Oslo II Accord of 1995.
As a reminder, last month the Israeli cabinet authorized a deduction of some 500 million shekels ($140m) from the PA due to its longstanding policy of paying monthly stipends to convicted terrorists and their families.
The PA’s finance minister wrote in a letter to Finance Minister Moshe Kahlon, among other things, that “the cuts to the PA taxes that Israel collects for the [PA] are intolerable and contravene the Oslo Accords and the economic amendations signed in Paris.”
It should be noted that according to the PA, Israel also deducted funds earmarked for various other services for which the Palestinians rely on Israel, such as electricity, water and other infrastructure.
PA Foreign Minister Riad Malki, meanwhile, has asked international bodies to pressure Israel to return the deducted funds, which puts considerable strain on the PA’s monthly budget.
The taxes Israel collects on the PA’s behalf amount to 60% of its overall budget.
The PA expressed outrage over the Israeli decision and a senior official in Abbas’ office threatened to “dismantle the PA.”
The official added: “The Israeli cabinet’s decision is a gross and unilateral violation of the Paris Protocol. We will take the appropriate steps, and even consider dismantling the PA and returning economic responsibility [for Palestinian affairs] to Israel.”
Despite the cabinet’s measure, the PA’s transition government, following the resignation of former PA Prime Minister Rami Hamdallah, still transferred the stipends to Palestinian security prisoners and the families of “shahids” (martyrs).
“Israel is grossly violating the agreements and the consequences will be severe,” Abbas said. “This is another blockade on the Palestinian people, who are buckling under the crimes of the occupation – and all of these measures against us began with [U.S. President Donald] Trump’s plan. We will not allow it.”
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