"The Palestinian Authority transfers funds to terrorists by various laundering methods; the more severe the acts of terrorism, the greater the amount of funds. Prime Minister Netanyahu has ordered that the entire amount of support for terrorists and their families be deducted from the tax revenues that Israel transfers monthly to the Palestinian Authority," the prime minister's press service said.
The decision, which took effect "immediately" was taken in response to the recent wave of violence conducted by Palestinian terrorists against Israeli nationals. At least two civilians, including a 13-year-old girl from the United States, were killed and six got injured in a series of terrorist attack in Israel earlier this week.
Prime Minister Benjamin Netanyahu is expected to hold a meeting with the military-political leadership on Saturday to discuss further counter measures, according to the prime minister's office.
Israel has repeatedly cut its transfers of tax revenues to the Palestinians in the past in response to terrorist attacks.