PA to pay public employees half salaries due to Israel withholding tax revenues

The Palestinian Authority finance ministry said on Sunday that it will only be able to pay public sector employees 50 per cent of their March salaries tomorrow, because Israel withheld a transfer of tax revenues due for the month of April. A minimum of 2,000 shekels ($500) will be paid to each employee, added the ministry, with the balance paid as and when the PA’s financial situation allows it.

On Saturday, the Palestinian government said that the ministry had prepared all the available funds to disburse the highest possible percentage of the salary, but Israel’s withholding of April’s tax revenues until now has hindered the process. According to the Israeli finance ministry, it had been decided not to transfer tax revenues this month, but it declined to provide details, said Reuters.

In its statement, the PA warned of the repercussions of Israel withholding the tax revenues that it collects on the authority’s behalf, and the resulting inability to disburse employee salaries and allocations to various sectors, including health, education, social care and relief.

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