JERUSALEM (Reuters) - Israel will cut around 5 percent of the tax handovers to the Palestinian Authority over its financial support for jailed Palestinians, the Israeli security cabinet said on Sunday, following similar U.S. legislation last year.
Under interim peace deals, Israel collects taxes on behalf the Palestinians, who put the current sums at $222 million (£172.2 million) a month. With negotiations stalled since 2014, Israel has at times withheld money as a measure of protest or pressure.
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