Israel withholds tax revenues from Palestinian Authority
JERUSALEM --Israel said Sunday it would withhold more than $100 million in tax revenue this month from the cash-strapped Palestinian Authority, the latest reaction to last week's U.N. vote recognizing the Palestinian territories as a "nonmember observer state."
Israeli Finance Minister Yuval Steinitz said he would use the money to repay part of an outstanding Palestinian debt -- estimated to be about $180 million -- to Israelís electricity company for power supplied to parts of the West Bank.
The action was expected since Israel previously halted the transfer of monthly tax payments in response to a similar U.N. bid by the Palestinians last year. The money is collected on behalf of the Palestinian Authority from West Bank importers using Israeli ports.