By Micah Halpern
I've Been Thinking:
Last week Israel decided to unfreeze the taxes they have been collecting for the Palestinian Authority over the past few months.
These are taxes that Israel collects from imports and then hands over to the PA.
The total comes to about $130 million per month. Periodically, to apply pressure on the PA, Israel withholds the tax money. And then, after a short period of time the monies get freed up and are handed over to the PA.
This time Israel unfroze the tax money and transferred it to the PA but first subtracted some of the debt the PA owes to the Israel
Electric Company. Not the entire debt, just part of it.
After discovering this --- Abbas decided to return the tax money to Israel.
Abbas said: "We are returning the money. Either they give it to us in full or we go to arbitration or to the court (ICC). We will not accept anything else."
Again, for Abbas and the PA, it is all or nothing.
As an aside: the PA will lose in arbitration at the ICC if Israel agrees to appear. Which they will not agree to do.
Micah@MicahHalpern.com
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