Palestinians reject Israeli offer of unfrozen tax money

Palestinian leader Mahmoud Abbas claims to have refused to accept hundreds of millions of dollars worth of its tax revenues unfrozen by Israel, alleging it is not the full amount.

Abbas says the money was returned because Israel had deducted a third of the amount, “to pay for utility bills”.

The Palestinian leader is threatening to take Israel to the International Criminal Court should it not release the full amount. Israel collects taxes on behalf of the Palestinian Authority but had stopped passing them on in January, as a protest against the Palestinians joining the ICC. Palestinian membership of the ICC began on 1 April, giving them the option to pursue Israel for alleged war crimes.

"We are returning the money. Either they give it to us in full or we go to arbitration or to the ICC. We will not accept anything else." 

The so-called utility bills deducted are the cost of services provided to the Palestinian population by Israel, including electricity, water and hospital bills.

Israeli Prime Minister Benjamin Netanyahu said at the time the "deteriorating situation in the Middle East" and rise of extremists required him to "act responsibly".

An official at the Israeli Prime Minister’s office told the media that they were "willing to transfer back to the Palestinian Authority the sum that was returned whenever it wishes".