The Palestinian Authority (PA) warned on Monday against Israeli Prime Minister Benjamin Netanyahus plan to deduct funds from Palestinian tax revenues to compensate Israeli settlers living near the Gaza Strip for a wave of arson attacks. Government spokesman Yousef al-Mahmoud slammed Netanyahus statement calling for deducting the farmers’ compensation costs from the Palestinian tax revenues, describing it as "an act of robbery and banditry." "The Israeli government is plotting to steal the funds of the Palestinian people,” he said in a statement, adding: "this is an act of aggression committed by thieves in the form of Israeli officials." On Sunday, Netanyahu instructed chief of Israel’s National Security Council Meir Shabbat to deduct money from the taxes collected by Israel on behalf of the Palestinian Authority. The Israeli government is expected to provide financial support to farmers whose lands have been hit or burned by kites. Israel collects around $100 million every month in taxes on goods imported by Palestinians and destined to the Palestinian territories that go through Israeli ports. PA has been suffering from a financial crisis which caused last month a delay in the salaries of employees. On Monday, the Authority received a contribution of €35.875 million from the European Union to pay the salaries and pensions of civil servants in the West Bank. EU Representative Ralph Tarraf said that EU is making its first annual contribution to the PA for 2018 as a donor committed to supporting the two-state solution. Member of the Executive Committee of the Palestine Liberation Organization (PLO), Taysir Khaled, warned the Israeli government against the consequences of this "act of piracy and burglary of Palestinian public money." Khaled stated that Netanyahu is fully aware of the illegality of such decision, just as the Israeli government is trying to enact legislation that allows it to deduct the amount of money paid by the Palestinian Authority to the prisoners and the families of martyrs. Khaled called for the immediate suspension of the Paris Economic Protocol in accordance with the decisions of the Palestinian National Council at its last session. For his part, Israeli Finance Minister Moshe Kahlon said Monday that flying incendiary kites from Gaza is considered terror for all intents and purposes. Kahlon said that the Gaza border communities harmed by incendiary kites would be fully compensated. "To alleviate the farmers situation, weve decided to give them an initial compensation covering 50 percent of the damage and the rest will be given to them as soon as possible," Kahlon said. Kahlons remarks came after statements by Israeli Defense Minister Avigdor Lieberman, in which he pledged to terminate this issue. According to the defense minister, 600 such kites have been sent from the strip so far, while 400 have been intercepted by Israeli security forces using technological means. "Two-hundred succeeded in reaching our territory and they burned 9,000 dunams of crops and forests," Lieberman said. Israeli reports indicate that another 15,000 dunams have been partially damaged, and the numbers are likely to rise as incendiary kites are expected to continue. According to official Israeli figures, since Palestinians began using incendiary kites in the past two months, 350 points surrounding Gaza caught fire. As a result, about 25,000 dunams have been damaged in various settlements and natural reserves.