The Palestinian Authority (PA) says Israel’s suspension of the transfer of Palestinian tax revenues has had a "devastating impact" on the economy of Palestine.
Palestinian caretaker Prime Minister Salam Feyadh said the Israeli freeze on the funds will make him unable to pay the salaries of tens of thousands of civil servants, the Associated Press reported on Sunday.
The funds, which make up a large percentage of the PA’s monthly budget, were frozen in November by Tel Aviv, after Palestine became a full member in the UN cultural organization, the UNESCO.
Critics say Israel isn’t entitled to impound funds it collects on behalf of the Palestinians.
Last week, UN Secretary General Ban Ki-moon called on the Israeli regime to immediately release Palestinian taxes.
Every month, Israel collects about USD 100 million in customs duties levied on goods destined for Palestinian markets that transit Israeli ports. The funds make up a large percentage of the PA budget.
The PA says it distributes more than USD 200 million every month only in salaries and financial assistance to the neediest Palestinian families.