RAMALLAH, Feb. 27 (Xinhua) -- Prime Minister of the Palestinian Authority (PA) caretaker government Rami Hamdallah announced on Wednesday that the PA returned the tax revenues to Israel after the latter deducted it.
According to agreements signed between Palestine Liberation Organization (PLO) and Israel in 1994, Israel collects taxes from the Palestinian trade and commercial movement and pays it back to the PA treasury.
Hamdallah said to Palestine TV, during his visit to the southern West Bank city of Hebron, that the Palestinian side returned the money of the tax revenues to the Israeli side after deducting 41.8 million Israeli shekels (11.5 million U.S dollars).
"The Palestinian decision not to take the deducted tax revenues and return it back to the Israeli side was decided in the last cabinet meeting held in Ramallah," Hamdallah said.
He said that the Palestinian leadership will be responsible for the prisoners in Israeli jails and the families of the Palestinians killed by Israel, adding "it is our duty."
Israel had decided two weeks ago to deduct the tax revenues it collects on behalf of the PA, saying that the money which was deducted was paid to families of Palestinians who carried out "terrorist acts" against Israel.
Hamdallah said that the political and financial siege imposed on the Palestinians is tightened amid a decline of international funds.
The Palestinian prime minister slammed Israel for its measures taken against the Palestinians, including "land confiscation, expansion of settlements, isolating Jerusalem and tightening the siege on the Gaza Strip."
"It is an organized war that Israel is practicing against the Palestinians to undermine the PA and foil any attempt to enable the Palestinians gain their legitimate rights and establish their stare with East Jerusalem as its capital," he said.