Israel's far-right Finance Minister Bezalel Smotrich has ordered the seizure of 100 million shekels ($26 million) of tax funds intended for the Palestinian Authority, saying it would be used to pay for Israeli victims of terrorism.
In a statement issued late on Sunday, the finance ministry said the confiscation of funds was "part of measures to combat terrorism".
The statement quoted Smotrich as accusing the Palestinian Authority, which governs parts of the Israeli-occupied West Bank, of diverting the funds to the "families of terrorists".
Israeli politicians have regularly criticised the Ramallah-based Palestinian Authority for granting financial support to the families of Palestinians killed or jailed for acts of violence against Israel.
The finance ministry statement noted that this was the fifth time it had withheld funds, which Israel collects on behalf of the Palestinian Authority.
The Palestinian Authority did not immediately respond to AFP requests for comment.
Since Hamas's October 7 attack triggered the war in Gaza, Israel has imposed economic curbs on the Palestinian Authority, often withholding tax revenues it collects on its behalf.
Smotrich said on Monday on social media site X that the withholding of Palestinian funds was part of a broader strategy to prevent the creation of a Palestinian state "to ensure security" for Israelis, alongside increased settlement in the West Bank.
"We are working on the ground to remove this threat (of a Palestinian state) ... by strengthening settlement through construction, ... fighting the terror funds of the Palestinian Authority and its leaders, and maintaining complete Israeli control over the area."
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