Palestinian economy said frozen by Israel

By JTA (Jerusalem)

article created on: 2011-12-01T00:00:00

Israel’s suspension of transferring tax revenue to the Palestinian Authority has had a “devastating impact” on the Palestinian economy, PA Prime Minister Salam Fayyad said.

Israel has been withholding about $100 million in tax payments collected on the Palestinians’ behalf since the Palestinians were accepted as a full member of UNESCO, the United Nations scientific and cultural agency, and is continuing to withhold them over Fatah-Hamas unity talks.

Meanwhile, on Nov. 30, Israeli Prime Minister Benjamin Netanyahu agreed that he could release frozen Palestinian Authority funds.