Palestinian PM says efforts underway to recover withheld tax funds from Israel

RAMALLAH, July 15 (Xinhua) -- Palestinian Prime Minister Mohammad Mustafa said here Tuesday that political contacts and efforts are ongoing with various parties to recover the withheld tax revenues from Israel.

The revenues are "vitally important in enabling state institutions to continue performing their duties towards citizens," Mustafa told a weekly cabinet meeting.

The Palestinian Finance Ministry said recently that it was awaiting the transfer of May and June tax revenues from Israel.

Under existing arrangements, Israel collects customs duties and value-added taxes on goods imported into the Palestinian territories, and transfers them to the Palestinian Authority (PA) monthly.

The funds, constituting 65 percent of the PA's total financial revenues, are used to pay the salaries of public employees.■