Israel yet to honour Aqaba tax commitment, top Palestinian official says

The Palestinian Authority calls for millions of dollars in revenue to be transferred

Palestinian President Mahmoud Abbas (L) with adviser Hussein Al Sheikh. They claim Israel is withholding vital tax revenue. AFP

Israel has yet to fulfil a verbal promise to transfer tax revenue it is withholding from the Palestinian Authority, a senior Palestinian aide has said.

Hussein Al Sheikh, one of the closest advisers to PA President Mahmoud Abbas, said a lack of engagement with proposals discussed at a recent international summit in the Jordanian city of Aqaba to de-escalate tensions between Palestine and Israel was casting doubt over a follow up meeting scheduled in Egypt this month.

“They promised at Aqaba that they would transfer all of the funds but as of now we haven’t gotten anything,” Mr Sheikh told The Times of Israel on Saturday.

Israel collects tax revenue on the behalf of the PA. The monthly amount makes up a significant budget of the cash-strapped authority and its distribution is often a source of contention.

Mr Al Sheikh said millions of dollars were being held contrary to Israeli promises to release them. Last month, the PA said Israel had cut $78 million from the monthly revenue.

Israeli National Security Adviser Tzachi Hanegbi told The Times of Israel in response to Mr Al Sheikh's accusation that the revenue was "not discussed at all" at the meeting, and that they were a matter for a "civil committee that was established at the [Aqaba] meeting”.

Israeli Prime Minister Benjamin Netanyahu has put heavy scrutiny on the arrangement, saying that funds can be sent by the PA to convicted terrorists and the families of attackers that were killed.

Mr Al Sheikh blamed in particular far-right Finance Minister Bezalel Smotrich, who he called a "terrorist" in response to calls from the minister that the Palestinian town of Hawara should be "wiped out".

Two Israelis were shot dead there this week, triggering a rampage by Israeli settlers in which homes and property were set on fire and one Palestinian was killed. Mr Smotrich later said his comments were a "slip of the tongue in a storm of emotions".