The Palestinian Authority on Wednesday returned the full amount of tax money it had received from Israel, amounting to half a billion of shekels.

The moves comes after a law passed to deduct terrorists' salaries from tax revenues Israel collects on behalf of the PA.

Palestinian President Mahmoud Abbas said that the PA had decided to reject all the tax funds in the wake of Israel’s decision to start deducting the money paid to the families of "martyrs" (who died while carrying out an attack).