Finance Minister Bezalel Smotrich sent a letter to Prime Minister Benjamin Netanyahu, announcing plans to halt the transfer of taxes collected by Israel to the Palestinian Authority.

Additionally, Smotrich stated that he would cease transferring funds to banks through which money flows into the autonomy.

Smotrich revealed that during the last government meeting, he and other ministers called for sanctions against the leadership of the autonomy in response to recent unilateral actions taken against Israel. These actions include attempts to unilaterally recognize the Palestinian state and elevate the autonomy's status in the UN.

Furthermore, Smotrich is demanding the immediate convening of the High Commission for Planning and Development to approve projects for 10,000 housing units in the settlements of Judea and Samaria, as well as in the E1 area connecting Ma'ale Adumim and Jerusalem.

The finance minister argues that recommendations by the chief prosecutor of the International Criminal Court in The Hague to issue arrest warrants for the prime minister and defense minister, along with the recognition of the Palestinian state by several European states, justify imposing sanctions on the autonomy.