Finance Minister Bezalel Smotrich has advanced a compensation framework for businesses whose property was directly damaged by extortion, or “protection money,” demands and that are not covered by insurance. The plan was developed by the Finance Ministry after Smotrich discussed the issue with affected business owners, following an appeal from MK Zvi Sukkot. It is intended to support businesses and is described as costing tens of millions of shekels.
Under the proposal, which will be brought to the government for approval and published for public comment in the coming days, eligible businesses will receive reimbursement through the Compensation Fund operated by the Tax Authority. The state would cover repair expenses for verified damage. The ministry said the scheme is meant to create a financial safety net, encourage victims to file police complaints, increase cooperation with law enforcement, strengthen deterrence, and help bring offenders to justice.
The plan will initially run for up to six months, after which officials will review its effects and decide whether to continue it, in part to avoid harmful consequences for the insurance market. Three main eligibility conditions were set: the business must have suffered direct physical damage from an extortion offense, must hold an insurance policy but be unable to receive compensation from the insurer for that damage, and must have filed an official complaint with the Israel Police about both the extortion and the damage. Only incidents occurring after the plan takes effect will qualify, and payment will be made only after the Tax Authority confirms eligibility and the repair has actually been carried out.
The ministry set aside 30 million shekels for implementation. Smotrich said, “Standing with extortion victims is a national interest,” and added that businesses and farmers have state backing and should not yield to violence. Sukkot said his recent tours in the north exposed “terrible distress” among business owners whose insurers turned them away, and said the state must intervene immediately.
