 Israel will withhold and not transfer tax revenue it collects on behalf of the Palestinian Authority, in reaction to a Palestinian move this week to upgrade its UN status, Finance Minister Yuval Steinitz said Sunday, dpa reported.
| Spend the withheld funds on new settler housing in the West Bank... |
Israel media said the move is part of Israel's retaliation for the Palestinians' successful application to the United Nations to have their status upgraded to "non-member state," a move Israel objected to and said was aimed at circumventing negotiations.
The confiscated funds - around 460 million shekels, or 120 million dollars - will be used to offset debts the PA owes the Jewish state for electricity supplied it.
| Might want to build up a surplus in the power fund... |
On Friday, Israel reacted to the Palestinian triumph at the UN Thursday by announcing the construction of 3,000 homes in West Bank settlements, sparking international criticism. |