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The Palestinian Authority announces an agreement with Israel to receive taxes collected on its behalf

October 4, 2019


The Palestinian Authority announced on Friday a principle of agreement with the Government of Israel by which this administration will return part of the tax revenue withheld for almost eight months and that, according to official data, exceed 200 million dollars per month.

The controversy broke out in February, when the Executive of Benjamin Netanyahu decided to deduct from the funds raised in the West Bank and Gaza Strip the money that the administration of Mahmoud Abbas allegedly gives to relatives of Palestinians killed or detained by Israel.

The Palestinian Authority then decided to reject all these funds, but the head of Civil Affairs, Husein Sheikh, has confirmed Friday that he has reached an agreement with Israel’s Finance Minister Moshe Kahlon to resume some of the payments.

Sheikh has acknowledged that there are still differences between the two parties regarding the aid that the Palestinian Authority dedicates to prisoners and relatives of the deceased, but has confirmed that contacts will continue in the next few days, the WAFA news agency reported.

The agreement comes in full negotiations for the formation of a new government in Israel, after a close election that practically left the two big blocks tied. Netanyahu has proposed a government of national unity, but the main opposition leader, Benny Gantz, has rejected the continuity of the prime minister.