Israeli Finance Minister Bezalel Smotrich says he will no longer transfer tax funds to the Palestinian Authority (PA) after Norway, Spain, and Ireland said that they will recognise a Palestinian state, Al Jazeera reports.

In a post on X, the far-right minister added that he would cancel the setup in which Norway collects the PA’s tax funds.

“Norway was the first to unilaterally recognize a Palestinian state today, and it cannot be a partner in anything related to Judea and Samaria,” he said.

Israel collects tax on behalf of the Palestinians and makes monthly transfers to the PA under the Oslo Accords but in November 2023, it froze funds meant for Palestinians in Gaza.

In February 2024, Palestinian and Israeli officials agreed that Norway would serve as an intermediary for holding revenues that Israel had withheld.