BICOM

Finance Minister Yuval Steinitz agreed yesterday to release millions of pounds of tax revenue to the Palestinian Authority after receiving reassurances that Hamas would not be a recipient. Earlier this month, Israel blocked the transfer of around £54 million in taxes and levies it collected on behalf of the Palestinians over concern that, following the announcement of a Palestinian unity government, the tax revenue could be used by Hamas to fund its terrorist related activities.

Finance Minister Yuval Steinitz said that he had received “suitable clarifications” that the money would not end up in Hamas’ hands. He noted that if the money did start funding the terrorist organisation then Israel would again freeze the transfers. Palestinian Prime Minister Salaam Fayyad lobbied the international community to put pressure on Israel to release the funds. The PA relies heavily on aid from donors and the tax Israel collects to pay its civil worker salaries.