ISRAEL has hit back over holiday rental company Airbnb’s decision to to ban listings from illegal West Bank settlements, vowing to impose high taxes on the firm and urging homeowners to take legal action against it.

The threats of sanctions ramp up Israel’s fight against a global movement advocating for boycotts over the country’s treatment of Palestinians.

The Boycott, Divestment, Sanctions campaign – known as BDS – has claimed a number of successes in recent years, leading Israel to identify it as a major threat.

Israeli tourism minister Yariv Levin called on Airbnb to reverse what he called a “discriminatory decision” and “disgraceful surrender” to the boycott movement, vowing that Israel would retaliate. “If you have a policy of discrimination against Israelis you cannot earn money in Israel,” he said.

Levin also said the government would encourage hosts in West Bank settlements to sue the company to make it “pay” for its decision and that Israel would impose other restrictions on Airbnb’s operations in the country.

Airbnb announced on Monday that it would delist 200 properties in coming days and cease its operations in Israeli settlements “that are at the core of the dispute between the Israelis and Palestinians”. The company declined to comment on the Israeli threats.