Israel Launches Pilot to Compensate 'Protection Racket' Victims

The Israeli Ministry of Finance is launching a pilot program to compensate business owners who are victims of 'protection rackets,' also known as extortion or 'dmei chissut.' The initiative, spearheaded by Finance Minister Bezalel Smotrich, aims to provide a financial safety net for businesses that have suffered property damage due to these rackets, particularly when such damage is not covered by insurance. The program allocates 35 million shekels (approximately $9.5 million USD) for the initial two-month phase.

The goal is to encourage business owners to refuse to pay protection money and to cooperate with law enforcement agencies in combating the phenomenon. By offering compensation for direct property damage, the government hopes to reduce the economic burden on businesses and foster a safer business environment. The program is intended to strengthen the Israeli economy and assist in the broader fight against organized crime.

The final procedure for the pilot was published by the Ministry of Finance after reviewing public comments. The program will be operated by the Property Tax division within the Tax Authority and will be closely monitored for effectiveness, with a focus on its contribution to law enforcement efforts and the creation of a secure business climate.

Minister Smotrich stated, "We are transferring the settlement revolution from Judea and Samaria to the Negev and Galilee, by establishing dozens of settlements, agricultural farms, and changing the legislative mechanism. As a first step, we are providing a safety net for farmers and business owners who are victims of protection rackets and extortion offenses. I call on business owners: Do not pay protection money. The State of Israel stands behind you."