Israel transfers promised tax revenues to Palestinian leader

Israel has freed a promised £50m (€76m) in frozen tax funds and transferred the money to Palestinian President Mahmoud Abbas, an official in Israeli Prime Minister Ehud Olmert’s office said today.

The transfer, made last night, gives the moderate leader a boost ahead of crucial weekend talks in Damascus with the top Hamas leader and is the first such Israeli payment since the militant Islamic Hamas won control of the Palestinian government last March.

The funds are part of the customs duty and value added tax Israel collects for the Palestinian Authority under partial peace accords.

Israel halted transfer of the revenues when Hamas won parliamentary elections and set up its Cabinet.

The Israeli official said the money would be transferred directly to Abbas for use in humanitarian efforts and to boost his security force.

The official said Israel was satisfied by assurances that the money would not go to the Palestinian Finance Ministry, which is controlled by Hamas.