Israel, the occupying power, has decided to block tens of millions of dollars in tax transfers to the Palestinian Authority over payments to prisoners jailed for attacks.
In 1994, the Zionist entity and the Palestinian Authority signed the Paris Protocol, which would become part of the landmark Oslo peace accords. It governs economic relations and established a customs union between the occupying power and the Palestinian territories, with the former controlling the borders.
The Zionist entity levies VAT and tariffs on products imported into the Palestinian territories and transfers them to the Palestinian Authority.
The occupying power's finance ministry says it collects around 700 million shekels ($190 million, 170 million euros) in taxes each month on Palestinian imports.
From that, it deducts 100 million shekels to cover various services delivered to Palestinians.
The Zionist Prime Minister Benjamin Netanyahu's government decided Sunday to withhold $138 million in tax transfers to the PA over its payments to the families of prisoners, or the prisoners themselves, jailed for attacks on Zionist people.
The amount is to be deducted incrementally over 12 months. Israel says it is equal to that paid by the PA last year to those "imprisoned in the Zionist entity, to their families and to released prisoners".
The occupying power has also used the measure in the past to sanction the Palestinian Authority (PA).
Palestinian President Mahmud Abbas’ administration provides money to families of Palestinians killed or jailed as part of the conflict with the Zionist entity, with the amount depending on their sentences.
The PA says the payments are a form of welfare to the families who have lost their main breadwinner and denies it is seeking to encourage violence.
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