The Palestinian Authority will reportedly begin accepting tax revenue collected on its behalf by Israel after months of boycotting the funds over Jerusalem's now-defunct plan to extend sovereignty to parts of Judea and Samaria and the Jordan Valley and the government's policy of deductions terrorists' salaries from the tally.
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Under the 1993 Oslo Accords, a mechanism was set in place by which Israel collects various tariffs – value-added tax and customs fees – from all imports destined for the West Bank, generating over $100 million a month. The funds have become the biggest source of steady income for the Palestinian Authority.
According to Israeli media, the change in policy will likely come at the end of the month without concessions from the PA.
On Sunday evening, Secretary-General of the Palestinian Council of Ministers Amjad Ghanemr denied the reports, insisting the PA will continue to refuse the funds until Israel agrees to its demands such as easing restrictions on the movement of goods and people between the West Bank and the Gaza Strip.
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"We hope that we will win the political battle with the occupation and have the ability to recover the funds for compensation and end political blackmail," Ghanem told Palestinian outlet Watan News.
Israel so far has collected NIS 2.5 billion for the Palestinian Authority, which is used to fund all civil servants and West Bank officials.
This article was first published by i24NEWS.
