The government will withhold 149 million shekels (some $43,084,252) from the tax money it charges on behalf of the Palestinian Authority, after the security cabinet approved the move on Sunday.
Defense Minister Naftali Bennett said earlier that he was seeking the cabinet's approval for the move.
– Haaretz Weekly Ep. 54
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The funds will be withdrawn following the defense establishment's calculations of the sums that have been transferred by the Israeli government over the past year to families of victims of violent attacks.
International mediators believe that this move will reignite a crisis between Israel and the PA, as it did when Israel made a similar decision a year ago.
The security cabinet also discussed the resumption of the understandings reached with Hamas after the latest round of escalation, including the transfer of funds to members of the organization. Meanwhile, Qatar continues to transfer funds to the Gaza Strip, with the approval of Israel.
In July 2018, Israel passed a law according to which each month it must withold funds from the tax money it collects on behalf of the PA, which it is obligated to eventually transfer to the Palestinians. Israel claims that the PA has been using this money to support terrorist activities, by allocating stipends to terrorists and their families.