RAMALLAH, Oct. 4 (Xinhua) -- A Palestinian official announced on Friday that a deal has been reached with Israel on transferring the due tax revenues to the Palestinian Authority (PA).
Hussein al-Sheikh, member of the central committee of Palestinian President Mahmoud Abbas' Fatah party, said in a tweet that he held a meeting on Thursday with Israeli Finance Minister Moshe Kahlon to discuss "all outstanding financial issues."
"We agreed to activate the joint committees between the two sides to resolve all these issues starting on Sunday," al-Sheikh said.
However, al-Sheikh clarified that one of the issues that the two sides still disagreed upon is the issue of paying salaries for Palestinians jailed in Israel and the families whose children were killed during attacking Israelis.
"The Palestinian Authority insists that this issue must be resolved whatever the price is," he said.
Several meetings were held between the two sides over the past few months to discuss join economic and financial issues, though the peace talks between the two sides have been stalled since 2014.
The PA has been facing a severe fiscal crisis after Israel in February decided to cut the tax revenues payment by the amount that the PA pays to the Palestinian prisoners and families of the Palestinians killed by Israel.
Under an economic treaty reached in 1995 between Israel and the Palestinians, Israel collects the taxes from the Palestinian trade on the PA's behalf and pays it back to the PA to pay the salaries for its employees.
Israel cuts 12 million U.S. dollars every month from the tax revenues paid to the PA, which has refused to receive the reduced tax money from Israel.
