Palestinian Authority chairman Mahmoud Abbas said on Wednesday that the PA had decided to reject all the tax funds Israel collects on its behalf in the wake of Israel’s decision to start deduction from the sum the money paid by the PA to families of Muslim terrorists in Israeli prisons and to their families.
In 2018, Israel passed a law to deduct ‘Pay to Slay’ terrorists’ salaries from the Palestinian Authority.
The law says that welfare payments paid out by the PA to Muslim terrorists in Israeli prisons and to their families, as well as the families of terrorists eliminated during terror attacks, must be deducted from tax revenues Israel transfers annually to the administrative body.
The money withheld in this way would instead go into a fund designated to help victims of terror attacks.
Abbas said the PA would continue to pay out these stipends to Muslim terrorists and their families rather than accept a partial transfer of the tax revenues from Israel.
Israel collects taxes in Judea, Samaria, and Gaza and makes monthly payments to the PA, which says it receives around $222 million each month.
The Israeli Finance Ministry said on Wednesday it collects about 700 million shekels ($193 million) in PA taxes and transfers around 600 million shekels of that to the Palestinian Authority after deducting payments for electricity, water, sewage, and medical treatment services.
The United States last year passed legislation to sharply reduce aid to the Palestinian Authority unless it stopped the pay-outs to terrorists.
The measure, known as the Taylor Force Act, was named after a 29-year-old American military veteran fatally stabbed by a Muslim terrorist while visiting Israel in 2016.
Last month the PA declined some $60 million in U.S. annual funding for their security forces, worried about possible terror victim’s lawsuits under new US anti-terror laws.