Finance Minister Moshe Kahlon
Finance Minister Moshe KahlonYonatan Sindel/Flash 90

Finance Minister Moshe Kahlon (Kulanu) on Sunday night signed an order to deduct 42 million NIS ($11,578,350) from the taxes transferred each month to the Palestinian Authority, Israel Hayom reported.

The deduction is in accordance with a law passed last summer, and will affect a total of 504 million NIS ($138,950,280) in payments made during 2019.

Under the law, the Israeli government would withhold tax funds to the Palestinian Authority as long as the PA continues to pay salaries to terrorists who attacked Israeli citizens.

"I believe there is no place for giving prizes to terrorists," Kahlon said. "This is an important battle in our justified war against Palestinian terror. We have national honor, and there is justice in the world."

"It is unthinkable that we should ignore the salaries paid to terrorists, and this is why I made this decision. We are committed to terror victims."