The Israeli cabinet decided on Monday to continue withholding $100 million in tax revenues owed to the Palestinian Authority, which it was to have received two weeks ago. An official said, despite warnings from Israel’s Defense Ministry that the measure could threaten the stability of the Palestinian government in the West Bank.
Israel stopped transfer of tax funds as punishment for the Palestinian’s successful bid for admission to the United Nations’ cultural agency UNESCO, which was part of a larger effort to gain admission as a state in the world body.
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