ISRAELI Prime Minister Benjamin Netanyahu, who is campaigning for re-election, vowed Sunday to freeze money transfers by Israel to the Palestinian Authority (PA) after a deadly Palestinian attack on a young woman.

Israel collects around US$127 million a month in customs duties levied on goods destined for Palestinian markets that transit through Israeli ports and then transfers it to the PA.

The Israeli parliament, the Knesset, last year passed legislation to partially withhold funds, in response to PA payments to families of Palestinians jailed by Israel for attacks against Israelis.

“By the end of the week, the staff-work necessary for implementing the law on deducting terrorists’ salaries will be completed,” Netanyahu — who faces a general election in April — told journalists at the start of the weekly Cabinet meeting.

“Next Sunday I will convene the security Cabinet and we will approve the necessary decision to deduct the funds. Let nobody doubt, the funds will be deducted, at the start of next week,” the Israeli leader said.

Education Minister Naftali Bennett was among right-wingers who on Sunday pressed Netanyahu to implement the law after a Palestinian was arrested at the weekend over the murder of 19-year-old Ori Ansbacher.

“The law to offset terrorist funds passed... last July,” he Tweeted. “I call on the prime minister — apply the law immediately.”

Palestinian civil affairs minister Hussein al-Sheikh said the PA would not go along with Israel withholding any part of the tax money due.

“The Palestinian Authority will refuse to receive any cleared funds if Israel deducts a penny from it,” he said.

He did not say what the PA’s next step would be.

The Israeli army said Sunday it had started preparations to demolish the West Bank home of the Palestinian suspected of Ansbacher’s killing, named by security officials as 29-year-old Arafat Irfaiya from the flashpoint city of Hebron on the occupied West Bank.

“Overnight, troops operated in Hebron, where the suspect in the murder of Ori Ansbacher is from,” the army said. “During the operation, the troops surveyed the suspect’s house in order to examine the possibility of its demolition.” (SD-Agencies)