UN approved last week a resolution requesting International Court of Justice render 'advisory opinion' on the Israeli occupation.
Israel has announced a package of five sanctions against the Palestinian Authority (PA) in response to its diplomatic efforts to get the UN's top court to weigh in on the Israeli-Palestinian conflict.
The measures were a "response to PA's decision to wage political and legal war against the State of Israel," said a statement by the office of Prime Minister Benjamin Netanyahu following a Cabinet meeting on Friday.
"The current government will not sit idly by in the face of this war and will respond as necessary," Netanyahu's office said.
It said the first decision was to divert $39 million of taxes collected by Tel Aviv on behalf of the PA to Israelis harmed by Palestinian attacks.
The second decision was to deduct from Palestinian tax earnings the same amount of funds that the PA pays to families of Palestinian prisoners and those killed in the conflict.
Another punitive step was to halt Palestinian construction activities in Area C, denoting parts of the occupied West Bank under Israel's administrative and security control until a final status agreement is reached with the Palestinians.
The statement said the fourth sanction was to revoke the VIP cards of Palestinian officials Israel accuses of leading Palestinian efforts in the UN. These documents are used by Palestinian officials to easily pass in and out of the occupied West Bank without being harassed or searched by Israeli forces at checkpoints.
According to the statement, the fifth decision was to take measures against Palestinian institutions in the occupied West Bank accused of working against Israel.
READ MORE: Palestinians hail UN vote on Israel's occupation as victory for diplomacy
"Flagrant violation of Israel's obligations"
The Palestinian foreign ministry said the Israeli reprisals were a "reflection of the Netanyahu government's racist colonial platform against our people" and "a flagrant violation of Israel's obligations as an occupying power".
It said they would "not discourage our people and our leadership from continuing the struggle to provide international protection for our people and to put an end to Israel's continued impunity".
UN resolution on Israeli "annexation"
Last week, the UN General Assembly approved a resolution requesting the International Court of Justice to weigh in on the Israeli-Palestinian conflict, Israeli "annexation," and the "legal status of the occupation."
The resolution, which is titled "Israeli practices and settlement activities affecting the rights of the Palestinian people and other Arabs of the occupied territories," was promoted by the PA and it was passed by a vote of 87 in favour, 26 against, and 53 abstaining.
It calls on the top UN court to "render urgently an advisory opinion" on Israel's "prolonged occupation, settlement and annexation of Palestinian territory."
READ MORE: UN asks World Court to opine on Israel's occupation of Palestine's lands