Israel restores tax transfers to Palestinian Authority

JERUSALEM (Reuters) - Israel said on Monday it would restart regular monthly tax transfers to the Palestinian Authority, restoring vital funding days after U.S. President Barack Obama called for confidence-building steps toward peace.

Israel began withholding the money - about $100 million (65.8 million pounds) in tax revenues it collects each month on behalf of the Authority - in November after President Mahmoud Abbas secured de facto U.N. recognition of Palestinian statehood.