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Ramallah: The Palestinian Authority has delayed paying salaries to workers this month after Israel withheld tax funds, officials said on Sunday.
A senior Palestinian official said the government had expected to receive tax revenues on June 2 that Israel collects on its behalf and had planned to pay salaries two days later.
"As of today, we have not received the tax money, so we failed to pay the salaries," the official said.
A senior Israeli official said Israel withheld the funds in anger over Palestinian attempts to block upgraded European Union-Israeli ties.
The official also said that the Israeli Finance Ministry will deduct about a quarter of the $75 million tax fund to cover Palestinian Authority debts to Israeli utilities.
The senior Palestinian government official said the Palestinian Authority "would not be able to pay all salaries if Israel deducts any amount from the Palestinian tax revenues".
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