PA minister: Abbas will refuse to receive Israeli tax transfers if deductions are made following Israeli terror law
Official PA daily, Al-Hayat Al-Jadida - Feb. 11, 2019

 
Headline: "Netanyahu promised to steal part of the returns of the Palestinian taxes in response to his right-wing political opponents – Al-Sheikh: The president [Abbas] has announced to Israel that he will refuse to receive the collected [tax] money if even one penny is deducted"
       "[PA] Minister of Civil Affairs [and Fatah Central Committee member] Hussein Al-Sheikh said yesterday [Feb. 10, 2019] that he has conveyed an official message at the request of [PA] President Mahmoud Abbas that emphasizes that 'He will refuse to receive the collected [tax] money if Israel deducts even one penny from it (referring to an Israeli law to deduct terrorist salaries from PA tax money; see note below –Ed.).'
Al-Sheikh added to the French news agency that 'Large international financial bodies and institutions have begun to respond to the American demand to impose a heightened financial siege on the PA.'
Al-Sheikh continued: 'Washington has requested to stop the granting of financial aid to the PA and published a memorandum to banks not to receive transfers to the accounts of the [Palestinian] Authority (PMW could find no record of such a US memorandum –Ed.).'
He revealed that 'These sanctions began with the prevention of the transfer of an Iraqi grant of $10,000,000 that was recently given to the Arab League, and the league could not transfer it due to the refusal of all the banks to receive it in order to transfer it to the PA treasury or the [Palestinian] National Fund.'"
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Law to deduct terrorist salaries from PA tax money - Israeli law stating that the PA payments to terrorists and the families of dead terrorists is a financial incentive to terror. The law instructs the state to deduct and freeze the amount of money the PA pays in salaries to imprisoned terrorists and families of "Martyrs" from the tax money Israel collects for the PA. Should the PA stop these payments for a full year, the Israeli government would have the option of giving all or part of the frozen money to the PA. The law was enacted on July 2, 2018.
During the parliamentary vote, the law's sponsor Avi Dichter said: “The Foreign Affairs and Defense Committee received much help in its deliberations... from Palestinian Media Watch who provided us with authentic data that enabled productive and professional deliberations, nuances that are very difficult to achieve without precise data.” [Israeli Parliament website, July 2, 2018]