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View Full Version : Palestinian Tax Money to be Released, Again...


SteveGrenard
24th June 2007, 08:58 AM
I believe we heard this message a while ago but it never came to pass. Now Israel is again saying it has agreed to release Palestinian tax money to the Palestinians.

What I don't understand about the Palestinians is why (once they learned Israel originally wasn't going to remit the tax funds collected from them) they continued to pay taxes? If there was ever a cause celebre for a tax revolt this surely would've been it. Can anyone explain this?

I understand why Israel would like to prevent the purchase of weapons/bomb making stuff with this money but then certainly the Israelis are smart enough from an accounting point of view to figure out how they could issue credits for allowed purchases like salaries, toilet paper, soap, disinfectant, clothing, medicines, consumer goods, and imported foods. And then when the invoices are presented, pay them.



The money, Palestinian tax revenues withheld by Israel since Hamas came to power in an election last year, is part of an initial package to bolster Mr Abbas that Israeli Prime Minister Ehud Olmert is likely to announce at a summit in Egypt tonight.

Israel wants to isolate Hamas economically, diplomatically and militarily in Gaza, which the Islamist group seized control of more than a week ago, while allowing funds to flow to Mr Abbas's Fatah administration in the West Bank.

An Israeli government official said Mr Olmert's cabinet had approved the transfer of about $US350 million, short of the $US700 million.
Israel says courts have frozen some of the funds to cover Palestinian debts.

The money will be given to the emergency administration in stages once a mechanism is in place to ensure it does not reach Hamas.

"The Israelis should release all our money," said Saeb Erekat, a senior Abbas aide. "These are Palestinian, not Israeli, funds."

http://www.theaustralian.news.com.au/story/0,20867,21961500-2703,00.html


Could this action by Israel also be seen as:

1. The equivalent of a blockade for the purpose of starving
the Palestinians to death?

2. Ditto #1 but inflicting disease and pestilence upon them.

3. Outright thievery on the part of Israel. I am sure the money is
invested.....and they are earning interest but as muslims, the Palestinians
can't accept it. Are some people in Israel (e.g. banking types) making
money off this? ("Follow the money....")

geni
24th June 2007, 09:15 AM
I understand why Israel would like to prevent the purchase of weapons/bomb making stuff with this money but then certainly the Israelis are smart enough from an accounting point of view to figure out how they could issue credits for allowed purchases like salaries, toilet paper, clothing, medicines, consumer goods, and imported foods. And then when the invoices arrived pay them.


Why would they want to do that? First part of divide and rule appears to be complete. Second half (arming the comparative moderates) may now commence.

webfusion
24th June 2007, 09:06 PM
Can anyone explain this?

The funds are from the V.A.T. accounts. Palestinian goods from Gaza and the West Bank cross through Israel, to Europe or Jordan, and there is a 16.5% levy.
http://en.wikipedia.org/wiki/Value_added_tax

That money normally gets returned to the PA, ever since OSLO 1. Right now, there is a legal problem for Israel, because of international banking prohibitions against making funds available to the HAMAS-run Authority. These sanctions are legally in place, and if Israel was to violate them, it would find itself facing banking sanctions (HAMAS is a designated terrorist organization, and as such, it is illegal to transfer money into their coffers).

A few months ago, Israel was going to transfer VAT funds through the P.I.F., but by agreement with Abbas, the $$$ ended up being used to pay the debts of the PA (for fuel to DOR Energy Co. and for electricity to the IEC, and water to MEKOROT).

With Fayyed Salam now as the head of the "emergency gov't" of the PA, the Israelis are working on making the money available, apparently once again through the PIF.
http://www.boston.com/news/world/articles/2005/08/30/palestinian_authoritys_us_assets_are_frozen/