Palestinians reject tax transfer from Israel

The Palestinian Authority (PA) has rejected the first 2019 monthly tax transfer from Israel because it slashed the portion designated for financial support to families of Palestinian prisoners who are jailed in Israel, a PA minister said. The decision came despite increasing cash flow troubles, caused in part by US aid cuts, that could destabilise the PA, an interim self-government body set up following the 1993 Oslo accords between the Palestinians and Israel.
Under the interim accords, Israel collects taxes on imports into the Israeli-occupied West Bank and in the Gaza Strip, an enclave under Hamas rule since 2007, and makes monthly transfers of the proceeds to the PA.
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