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Israel transfers tax to Palestinians

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JERUSALEM (CNN) -- Israel transferred $100 million in tax collections to the Palestinian Authority Friday, ending a 10-month freeze on the assets, a representative at the prime minister's office said.

The move came a day after Miri Eisin, Israeli Prime Minister Ehud Olmert's spokeswoman, told CNN that Jerusalem would shift the funds once mechanisms were in place to make sure the money would not fund terrorism.

Israel collects taxes on behalf of the Palestinian Authority.

The payments were put on hold after the Islamic militant group Hamas came to power in March. The group's charter calls for the destruction of Israel.

An Israeli official told CNN that the money would be used for humanitarian purposes and to help strengthen the hand of moderate Palestinian President Mahmoud Abbas.


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