Nadav Argaman
Nadav ArgamanHadas Parush/Flash 90

Israel Security Agency (Shin Bet) chief Nadav Argaman warned on Sunday about the implications of deducting funds from the tax money transferred by Israel to the Palestinian Authority (PA).

According to Channel 13 News’ Barak Ravid, Argaman said during the Cabinet discussion on the matter that while the offsetting of the funds is legal, the move could have a negative impact on relations with the Palestinian Authority.

"The offsetting of the funds could cause unrest in the area," the Shin Bet chief reportedly told the Cabinet ministers. "The government needs to decide what kind of relationship it wants it to have with the Palestinian Authority."

Israel's Security Cabinet on Sunday approved Defense Minister Naftali Bennett's proposal to cut 149 million shekels ($43 million) from the tax funds that Israel transfers to the PA, which is the sum that the PA paid to terrorist families last year.

Deputy Defense Minister Avi Dichter who initiated the "Pay to Slay" law deducting terrorist salaries from the funds transferred to the PA, responded, "I congratulate Minister Bennett on bringing the report for Cabinet approval following a law I passed in the Knesset with [Yesh Atid] MK Elazar Stern. For too long we have allowed the Palestinian Authority to pay salaries to terrorists. The party is over with the law we passed in the Knesset."

To date, Israel has only offset the salaries transferred to Palestinian Arab terrorist prisoners, released prisoners and their families, which amounted to 500 million shekels in 2018.