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PA needs Arab safety net to overcome Israeli tax freeze

The Palestinian Authority said it would not abandon its efforts to join international treaties, despite Israel's decision to freeze the transfer of tax revenues, a step considered a pressure card by Palestinian officials.
A Palestinian employee paid by the Palestinian Authority shows money to the camera after withdrawing cash from an ATM machine outside a bank, in Gaza City June 11, 2014. Gaza's public sector union suspended protests on Wednesday that had paralysed the local economy and threatened the deal on a Palestinian unity government but said it would resume its action if its members were not promptly paid. The pay dispute involving some 40,000 public servants erupted last week shortly after Hamas, which has ruled Gaza
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RAMALLAH, West Bank — Almost two weeks into January have passed and the Palestinian Authority (PA) has yet to pay the salaries of its employees and fulfill its financial obligations, a result of Israel freezing the transfer of tax revenues on Jan. 3.

Chief Palestinian negotiator Saeb Erekat slammed the Israeli decision as a war crime. The PA heavily counts on tax revenues of a monthly average of $170 million, which accounts for 65% of the salaries bill.

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