The Palestinian National Authority (PNA) and Israel are talking about upgrading the mechanism Israel uses in collecting tax revenues on behalf of the Palestinians, a Palestinian official said Sunday.

The discussions are part of monthly talks the two sides hold, the PNA spokesman Ghassan al-Khatib said, adding that the talks focus on "developing the taxation system in a way helping decrease tax leakage."

Each month Israel transfers about 100 million U.S. dollars in tax and tariff it collects on behalf of the PNA. In several occasions, Israel withheld the tax revenues to put pressure on the Palestinian leadership.

Al-Khatib also stressed that the monthly discussions have nothing to do with the Palestinian decision not to hold political negotiations with Israel.

He denied Israeli media reports that the talks aim at amending the Paris Protocol, which regulates economic relations between Israel and the Palestinians.

However, he said that the Palestinians "hope to amend the Paris Protocol."