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This is an archive article published on February 25, 2006

Israel stops tax payments to Palestinian Authority

The Israeli Cabinet agreed to freeze monthly tax payments to the Palestinian Authority a day after Hamas took control of Parliament.The deci...

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The Israeli Cabinet agreed to freeze monthly tax payments to the Palestinian Authority a day after Hamas took control of Parliament.

The decision is designed to squeeze Hamas leaders, who nominated Ismail Haniyeh as prime minister. This threatens to collapse the nearly bankrupt Palestinian government.

Israel’s decision puts it at odds with a group of Middle East peace interlocutors that includes the US, the EU, Russia and the UN. The group had recommended that Israel continue the transfers until Hamas forms the new cabinet. —LATWP

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