Palestinians to cut civil servant salaries after Israeli tax freeze

The Palestinian finance minister on Thursday announced salary cuts for civil servants, days after Israel said it would withhold tens of millions of dollars in tax transfers to the Palestinian Authority. (AFP)
Updated 21 February 2019
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Palestinians to cut civil servant salaries after Israeli tax freeze

  • Israel's security cabinet on Sunday approved the freezing of $138 million (122 million euros) over the PA's payments to the families of prisoners, or prisoners themselves, jailed for attacks on Israelis
  • Palestinian president Mahmud Abbas said Wednesday he would not accept anything but full payment of the tax transfers owed by Israel

RAMALLAH: The Palestinian finance minister on Thursday announced salary cuts for civil servants, days after Israel said it would withhold tens of millions of dollars in tax transfers to the Palestinian Authority.
Israel's security cabinet on Sunday approved the freezing of $138 million (122 million euros) over the PA's payments to the families of prisoners, or prisoners themselves, jailed for attacks on Israelis.
Israel, which collects taxes on behalf of the PA, says the payments encourage further violence.
The PA claims they are a form of welfare to families who have lost their main breadwinner.
Palestinian president Mahmud Abbas said Wednesday he would not accept anything but full payment of the tax transfers owed by Israel.
The PA, which is already running a deficit, will "pay the salaries of civil servants in time, but they will be reduced", said PA finance minister Shukri Bishara after a meeting with EU representatives in Ramallah.
The cuts will not apply to salaries "paid to pensioners and families of martyrs, wounded or prisoners", he added, adding that wages below 2,000 shekels ($550) would also not be affected.
Many Palestinians view prisoners and those killed while carrying out attacks as heroes in their conflict with Israel. Palestinian leaders often venerate them as martyrs.
Under a 1994 agreement, Israel collects around $190 million each month in customs duties levied on goods destined for Palestinian markets that transit through Israeli ports.
The money it then transfers to the PA is the authority's most important source of revenue.
The Palestinians want EU countries to pressure the Israeli government to rescind its decision, said Mahmoud al-Aloul, deputy of Abbas's Fatah party.
Palestinian leaders will take steps to "boycott Israeli goods", he said, adding they had already prepared "a list of Israeli products that have local (Palestinian) equivalents".


Iran, U.S. tension is a "clash of wills": Guards commander

Updated 2 min 32 sec ago
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Iran, U.S. tension is a "clash of wills": Guards commander

  • The commander said they will have a “hard, crushing and obliterating response” for their enemies
  • Tensions between Iran and US escalated after Trump restored sanctions
GENEVA: The standoff between Iran and the United States is a “clash of wills,” a senior commander of Iran’s powerful Revolutionary Guards said on Thursday, suggesting any enemy “adventurism” would meet a crushing response, Fars news agency reported.
Tensions have spiked between the two countries after Washington sent more military forces to the Middle East in a show of force against what US officials say are Iranian threats to its troops and interests in the region.
“The confrontation and face-off of the Islamic Republic of Iran and the malicious government of America is the arena for a clash of wills,” Iran’s armed forces chief of staff Major General Mohammad Baqeri said.
He pointed to a battle during the 1980-88 Iran-Iraq war where Iran was victorious and said the outcome could be a message that Iran will have a “hard, crushing and obliterating response” for any enemy “adventurism.”
On Sunday, US President Donald Trump tweeted: “If Iran wants to fight, that will be the official end of Iran. Never threaten the United States again!“
Trump restored US sanctions on Iran last year and tightened them this month, ordering all countries to halt imports of Iranian oil or face sanctions of their own.
Trump wants Iran to come to the negotiating table to reach a new deal with more curbs on its nuclear and missile programs.
Reiterating Iran’s stance, the spokesman for its Supreme National Security Council said on Thursday that “There will not be any negotiations between Iran and America.”
Keyvan Khosravi was also quoted as saying by the state broadcaster that some officials from several countries have visited Iran recently, “mostly representing the United States.”
He did not elaborate, but the foreign minister of Oman, which in the past helped pave the way for negotiations between Iran and the United States, visited Tehran on Monday.
“Without exception, the message of the power and resistance of the Iranian nation was conveyed to them,” he said.
In Berlin, a German diplomatic source told Reuters that Jens Ploetner, a political director in Germany’s Foreign Ministry, was in Tehran on Thursday for meetings with Iranian officials to try to preserve the 2015 Iran nuclear deal and cool tensions in the region.