The Israeli Finance Ministry has announced the launch of a NIS 35 million pilot program designed to support businesses affected by protection-money extortion. The initiative, advanced by Finance Minister Bezalel Smotrich, aims to compensate uninsured businesses for direct property damage resulting from extortion payments.
The pilot program, expected to run for approximately two months in its initial phase, seeks to alleviate the economic strain that protection-money demands impose on business owners. By providing financial assistance, the program intends to help businesses maintain operational continuity and incentivize cooperation with law enforcement, enhancing efforts to curb the practice.
Managed by the Israel Tax Authority Property Tax Division, the program offers compensation exclusively for damage not covered by insurance policies. Authorities will closely monitor various effectiveness indicators to assess the program’s impact on aiding enforcement agencies and improving the overall safety of the business environment.
Smotrich’s plan envisages distributing tens of millions of shekels to victims of extortion, offering them a government-backed alternative to making protection payments. This support aims to empower business owners to resist extortion without fear of bearing unsustainable losses.
The finance minister emphasized that the program addresses a gap for businesses previously left without recourse due to lacking insurance coverage for extortion-related damages. He described the initiative as a clear and innovative framework designed to strengthen the state’s response to this criminal activity.
In comments highlighting broader ambitions, Smotrich noted that the approach reflects a wider strategy of replicating development models from Judea and Samaria to the Negev and Galilee regions, including the establishment of new communities and agricultural ventures alongside legislative reforms.
He urged business owners to refrain from paying protection money, assuring them of the government’s support. “The State of Israel stands behind you,” Smotrich said, underscoring the state’s commitment to combating extortion and protecting legitimate economic activity.