Israel Seizes $120 Million in Palestinian Tax Money

In-depth Report:
palestine map

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.

Articles by: Jason Ditz

Related content:

Disclaimer: The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible for any inaccurate or incorrect statement in this article. The Center of Research on Globalization grants permission to cross-post original Global Research articles on community internet sites as long as the text & title are not modified. The source and the author's copyright must be displayed. For publication of Global Research articles in print or other forms including commercial internet sites, contact: [email protected]

www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.

For media inquiries: [email protected]