"The government did not receive tax deductions from Israel. The Palestinian leadership will not be subject to Israeli blackmail. When the necessary funds for salary payment appear in the Ministry of Finance, then the government will pay all salaries", Milhim said at a press conference.
Last week, Milhim said that the Palestinian government refused to accept Israeli monthly tax transfers for goods produced within its territory, as the country cut its ties with Israel.
The spokesman added that there were "casualties in every battle" and "personnel are partners in this battle".
In late May, Palestinian President Mahmoud Abbas decided to terminate all treaties with the United States and Israel, following Israeli Prime Minister Benjamin Netanyahu mentioning the potential annexation of the Jordan River's West Bank territories.
Israel has for decades been in conflict with the Palestinians, who seek diplomatic recognition for their independent state on the territories of the West Bank which were occupied by the Jewish state during the Six-Day War in 1967. Israel has been refusing to recognize Palestine as a state and defying UN resolutions in the process.