ISRAEL threatened more action against the Palestinian Authority (PA) today in revenge for its bid to join the International Criminal Court (ICC).

On Saturday, Israeli media revealed that the zionist state had frozen the transfer of tax revenues to Palestine, meaning the PA will not get 500 million shekels (£83m) owed it from December, about half the total collected in VAT and customs duties last month.

Israel collects tax owed to Palestine in the Occupied Territories and periodically withholds this money as a means of putting pressure on Ramallah to bend to its will.

But today, Israel’s Minister for Strategic Affairs Yuval Steinitz said Tel Aviv was considering further steps, while Prime Minister Benjamin Netanyahu said the country would not “sit idly by” while Palestine seeks international recognition.

He also pledged that Israel would not allow its soldiers to go before the ICC in The Hague if they are accused of war crimes.

Israeli officials say they will look at launching legal action against PA President Mahmoud Abbas (pictured) and other Palestinian officials in various countries including the United States.

But Palestine Liberation Organisation chief negotiator Saeb Erekat said Israel’s panicked reaction showed the PA was right to apply to join the ICC.

“When they withhold these funds, it means that this month people will not be able to pay for their schools, hospitals, medical supplies, milk and bread,” he told Al-Jazeera.

“They are trying to suffocate the whole nation, punishing four million Palestinians.

“This shows the legitimacy of what we are doing at the ICC.”