Israel to transfer tax funds to Palestinians

AP News
Posted: Jan 30, 2013 3:57 AM

JERUSALEM (AP) — Israel says it is transferring tax revenues to the Palestinian Authority that were frozen last year.

A government statement on Wednesday says it is a one-off arrangement meant to ease the Palestinian Authority's economic woes. It said it is handing over last month's tax take of about $100 million.

Israel's monthly tax transfers to the Palestinians — the result of taxes and customs duties that Israel collects on behalf of the Palestinians — are a key element in the Palestinian government budget. The Palestinian government is struggling to pay the salaries of its tens of thousands of workers.

Israel froze the monthly payments after the U.N. endorsed a de facto Palestinian state in the West Bank, east Jerusalem and Gaza in November.