Israel, Palestinians agree on tax revenue transfer after spat over utility debts deduction

The Palestinian president says he has reached an agreement with Israel in which tax revenues it collects for the Palestinians will be transferred following a three-month freeze.

Mahmoud Abbas said Saturday that "there is an agreement; the money will be sent in full."

Abbas initially rejected Israel's unfreezing of the tax funds because it included a deduction to settle debts incurred by his Palestinian Authority, including for unpaid utility bills.

Israel typically collects taxes and customs on behalf of the Palestinians and then transfers the sums. They account for 70 percent of the Palestinian Authority's revenue.

Israel froze the tax transfers in January, after the Palestinians applied to join the International Criminal Court — a step that could pave the way for possible war crimes charges against Israel.