The Palestinian Authority said on Wednesday they were rejecting taxes collected on their behalf by Israel, an escalation of measures in protest of Israel's plan to annex parts of the occupied West Bank.
The taxes, managed by Israel under the 1990s accords, make up over half of the budget of the Palestinian Authority. The Palestinians snubbed the handovers for several months last year after Israel trimmed the cash in retaliation for their funding for the families of jailed or slain militants.
With Israeli Prime Minister Benjamin Netanyahu having last month secured a new government and annexing the West Bank's Jewish settlements and Jordan Valley on the agenda, Palestinian President Mahmoud Abbas has declared bilateral deals null.
Israel's Finance Ministry declined comment.