Israel to withhold Palestinian funds until March, at least

Israel will withhold tax revenues from President Mahmoud Abbas's administration until March at least in response to his statehood campaign at the United Nations, Israel's foreign minister said.

Under interim peace deals, Israel collects some $100 million a month in duties on behalf of the Palestinian Authority in the occupied West Bank -- money that is badly needed to pay public sector salaries.

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Israel has already withheld the December transfer, saying the money would be used to start paying off $200 million the Palestinians owe the Israel Electric Corporation.

Lieberman, a hardliner in Israeli Prime Minister Benjamin Netanyahu's conservative coalition government, said the Palestinians also had another debt with the Israeli water authority that would have to be paid off.

http://www.maannews.net/eng/ViewDetails.aspx?ID=547149

eta the charges for water are rich indeed guess where the water is coming from