The cash-strapped Palestinian Authority (PA) will once again accept tax revenues collected on its behalf by Israel, after rejecting the money for months, Israeli and Palestinian officials said on Friday.
The PA had stopped taking the money because of a dispute with Israel over stipends paid to the Palestinians families killed or jailed by Israel.
A spokeswoman for Israel’s finance ministry said that 1.5 billion shekels ($431m) would be handed over to the PA on Sunday.
“The agreement was also on transferring a payment from the #PA’s financial dues. The dispute remains over the salaries of the families of #prisoners and #martyrs. We are determined to pay their dues at all costs,” Hussein al-Sheikh, the PA minister of civil affairs tweeted.
The change of policy could help the PA relieve a deepening financial crisis.
In February, Israel announced it would cut by five percent the approximately $190m in tax revenues it transfers to the PA each month from imports that reach the occupied West Bank and the Hamas-run Gaza Strip via Israeli ports.
The deducted sum represents the amount of money paid by the PA to families of Palestinian convicted and jailed by Israel for security offences, including deadly attacks on Israelis.
