Finance Minister Says Money Will Go to Power Company
The Israeli government has announced that it intends to keep $120 million in Palestinian tax money it has collected, and will give it to the Israel Electric Corporation (IEC) instead of the Palestinian Authority.
The exact reason for the seizure remains disputed, depending on which official statement you believe. In some cases, Israeli officials have spun it as revenge for the successful UN recognition of Palestine, while others insisted it had something to do with Iran, and still others insisted it was simply about paying back the power company for debts accrued.
Under the terms of past agreements, Israel collects certain taxes of the behalf of the Palestinian Authority, and forwards them on. In practice Israel ends up withholding the money regularly at the slightest provocation, which means such moves hardly come across as “retaliation” so much as business as usual.
Initially founded in 1923 as the Palestine Electricity Corporation, the IEC is now a state-granted monopoly and is also 99.85% owned by the Israeli government.
Last 5 posts by Jason Ditz
- Turkey Says Russia Ties at Risk Over Ongoing Strikes on ISIS - October 6th, 2015
- Russia Seeks New, Broader Military Talks With US on Syria Strikes - October 6th, 2015
- Battle Over Kunduz Highlights Risk to Huge US Afghan Investments - October 6th, 2015
- Taliban Uses Hit-and-Run Tactics to Harass Afghan Troops in Kunduz - October 6th, 2015
- ISIS Kills 22, Including 15 Soldiers, In Yemen Attacks - October 6th, 2015