On May 19, Palestinian President Mahmoud Abbas announced the abolition of all agreements and understandings reached with both Israel and the United States, including economic and security cooperation.
Abbas’s decision was made in response to Israeli Prime Minister Benjamin Netanyahu‘s declaration that his government will annex the Jordan Valley and impose the Israeli sovereignty on several settlements in the West Bank on July.
The Palestinian Authority (PA) also announced that it refused to receive the tax revenue dues that Israel collects from the Palestinian trade on behalf of the PA under Oslo interim peace accords signed between the two sides in 1993.
The tax revenue dues worth around 150 million United States dollars, which represents 60 percent of the Palestinian government’s total revenues.
“So refusing to receive the money will influence the ability of the government to pay the monthly salaries to its employees. The Palestinian economic situation is very hard and is influenced by the world‘s economy and the financial pressure mainly the lack of fund amid coronavirus crisis,” he said.
“One of the significant consequences of the Palestinian decision not to receive the money of the tax revenue dues is that the Palestinian market would lose 200 million dollars a month and there will be a severe decline in the purchasing power,” he said.
Samir Abdulla, director of “MAS” Center for Economic Researches told Xinhua that the economic and political pressure exerted by Israel on Palestine and the Palestinian decision to abolish peace accords with Israel pose challenge to PA.
“The growing economic crisis of the PA threatens a serious decline in the rates of economic growth and would undermine all what has been achieved in terms of building the Palestinian institutions and fighting the increasing poverty rates among the Palestinians,” he said.