Israel to release withheld tax revenues to Palestinians

Israel said on Friday it will start to resume part of the tax revenue transferes to the Palestinian National Authority (PNA) it has frozen since early January.

Israeli Prime Minister Benjamin Netanyahu said in a statement that his country will transfer to the PNA tax revenues that "accrued until this past February after offsetting the sum against payments for services rendered to the Palestinian population, including electricity, water, and hospital services."

The statement did not elaborate on revenue dues for March.

Netanyahu's decision, only ten days after he won Israel's parliamentary elections, was following a recommendation by Israel's Minister of Defense Moshe Ya'alon, the military, and the Shin Bet (Israel's security service).

The move was made due to "humanitarian considerations and an overall view toward serving Israel's interests at this juncture," the statement read.

"In the deteriorating state of the Middle East, it is incumbent upon us to act responsibly and with careful consideration while at the same time waging a determined battle against extremist elements," said Netanyahu.

In January, Israel halted the transfer of tax revenues it collected on behalf of the PNA as a punitive measure following the Palestinian bid to join the International Criminal Court in The Hague.

Since then, some 500 million U.S. dollars have been freezed, plunging the Palestinian economy into a major financial crisis, with a dangerously exposed banking system and a 40-60 percent cut in the salaries of the PNA's employees. Endit