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JERUSALEM – Israel will stop collecting tax revenues for the Palestinian Authority and not hand over any money if President Mahmoud Abbas continues to seek observer state membership of the United Nations, Israel’s finance minister said on Saturday.

“If the Palestinians continue to advance their unilateral move they should not expect bilateral cooperation. We will not collect their taxes for them and we will not transfer their tax revenues,” Finance Minister Yuval Steinitz said.

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tap here to see other videos from our team. Try refreshing your browser, or Amid renewed violence, Israel tells Palestinians to stop statehood bid or funding will be cut Back to video

Meanwhile on Saturday, Israeli tank fire killed four Palestinians in the Gaza Strip after militants blew up an Israeli army jeep with an anti-tank missile, wounding four soldiers.

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Palestinian fighters retaliated by firing rockets into southern Israel and an Israeli air strike targetted a rocket crew, killing a Palestinian militant, the Israeli army said.

The flareup carried the risk of further escalation. Explosions were audible and projectiles lit up the sky over Gaza shortly before midnight, but no further details were immediately available.