PA trapped by tax revenue freeze
Palestinian President Mahmoud Abbas has allegedly promised Israel to further tighten the noose around Hamas in exchange for Israel unfreezing Palestinian tax revenues.
For the second month in a row, Palestinian state employees have not received their full salaries, after Israel froze 500 million shekels ($127 million) on Jan. 3, from the Palestinian tax revenues in response to the demand of the Palestinian Authority (PA) to join the International Criminal Court.
On Jan. 4, chief Palestinian negotiator Saeb Erekat threatened to disband the PA if Israel continues to withhold tax funds. He considered the Israeli measure a collective punishment for Palestinians, as Israel already keeps 3% of the funds collected from the taxes on Palestinian goods.
On Feb. 9, member of Fatah’s Central Committee Mahmoud al-Aloul announced the formation a committee to boycott Israeli merchandise, in response to the ban on transferring tax funds. Six major Israeli companies’ products are no longer being imported.
The constant Palestinian threat to disband the PA is mere talk. The PA cannot decide to disband itself because its presence serves Israeli security, and Israel won’t allow its collapse. Case in point, although the boycott is in full effect, their security coordination is in full swing to pursue their common enemy, Hamas. They both know that if they fail to coordinate, commando operations against the Israeli army and settlers will resume.
