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Sunday, May 01, 2011

Breaking: Israel refuses to transfer tax money to the 'Palestinian Authority'

In reaction to the announcement of a Hamas-Fatah reconciliation, Israel has finally cut off the transfer of 'tax money' to the 'Palestinian Authority.'
Israeli Finance Minister Yuval Steinitz said he had suspended a routine handover of 300 million shekels ($88 million) in customs and other levies that Israel collects on behalf of the Palestinians under interim peace deals.

In an interview on Army Radio, Steinitz said that Israel feared the money would be used to fund Hamas, an Islamist terrorist group that runs the Gaza Strip and whose founding charter calls for the destruction of the Jewish state.

Israel had threatened sanctions last week in response to Palestinian President Mahmoud Abbas's surprise announcement of a unity deal with Hamas that envisages the formation of an interim government and elections.

The tax transfer mechanism provides Abbas's Palestinian Authority, which exercises limited self-rule in the West Bank, with $1 billion to $1.4 billion annually -- two-thirds of its budget.

"If the Palestinians can prove to us ... that there is not a joint fund between the Palestinian Authority and Hamas in Gaza, I believe that we will reconsider the matter," Steinitz said.

"We ask the entire world not to fund Hamas, so we must not do so, even indirectly," he said.

Asked about Israel's decision, Saeb Erekat, a senior Palestinian official, said: "Israel has started a war even before the formation of the government."
Israel withheld the money in the past - both during the Oslo War (second intifada) and during the period between January 2006 and the summer of 2007 when Hamas and Fatah were last in a unity government.

This is a great way to start the week.

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7 Comments:

At 12:04 PM, Blogger NormanF said...

A great way to start the week!

Carl - I believe you're wrong that Israel has not transferred money to Hamas in the past.

It has done so with a fig leaf. Now that the fig leaf is gone, its impossible to pretend the money is not going to Hamas.

But the decision today is a step in the right direction.

 
At 12:10 PM, Blogger David said...

Why not impose a rocket tax? Let the money flow and deduct NIS 1m for every rocket or terrorist attack that is launched. NIS 10m for every injury and NIS 100m for any deaths. The money should be used to pay for the cost of the state of protection against these attacks and to compensate the victims.

 
At 12:13 PM, Blogger Carl in Jerusalem said...

NormanF,

Israel never transferred money directly to Hamas, although it did transfer money to the 'Palestinian Authority' during periods when it was paying the salaries of its Gaza employees (and Hamas employees). But those transfers did not take place during the Oslo War (2000-04) nor during the previous 'unity government' (2006-07).

 
At 3:05 PM, Anonymous Anonymous said...

The unilateral Pali UNSC state declaration initiative voided Oslo (if the Fatah terrorist incitement wasn't sufficient) all by itself. The Pals have a grandiose and infantile conception of having the cake they're eating.

 
At 5:25 PM, Blogger Sunlight said...

Hey! David has a good idea! Each time Iron Dome is fired to knock down one of their rockets, charge them a NISxx amount. Prorate the cost of the shelters, safe rooms, training, detection and alarm systems and charge them per. Put the fine money into an escrow fund to be used to cover the costs in the West Bank of anything spent on the Palestinians (e.g., checkpoints, security operations, aid from Israel, etc.) ... Actually, you'd need some shrink psyops people to analyze incentive structure as far as getting the PA to get Hamas to stop the rockets.

 
At 5:44 PM, Blogger Unknown said...

Israel has always gave itself the right to make all unacceptable crimes as long as nobody will make it pay back. This time is theft. Well, they have made worse ! The coming days are definitely darker for israel.

 
At 8:03 PM, Blogger Juniper in the Desert said...

Poor aly! Just keep killing your fellow mozlems, blowing them up, shooting children, stealing people's land and murdering all non-mozlems. Soon you too will be at peace - or what you mozlems call "peace". The mahdi is coming!

 

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