Israel ready to transfer tax funds to Palestinians

By DPA

Jerusalem : Israel is prepared to transfer tax funds to the Palestinian Authority (PA), provided a mechanism is developed to ensure the money does not reach the Islamic Hamas movement, Israeli officials said.


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"This is Palestinian money and Israel does not plan to hold onto it once a mechanism is working," a spokeswoman for Prime Minister Ehud Olmert said Thursday.

The funds would be for humanitarian purposes only, an official added.

In January, Israel transferred approximately $100 million to the Palestinian presidency from taxes it collects for the PA, intended to meet humanitarian needs. According to PA estimates, Israel currently holds at least $700 million in additional funds.

The PA has been internationally boycotted since Hamas rose to power following last year's elections. The group refused to recognize Israel and renounce violence.

Earlier Thursday, Norway transferred funds to the PA, in what was the first such donation from a Western state since the boycott began.

Meanwhile, Israeli officials said it is likely that Olmert and Palestinian President Mahmoud Abbas will meet at the end of next week, although an exact date and place have not yet been confirmed.

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