Israel Pays Billions in War Damage Claims Since October 7

Israel has paid approximately 38.6 billion shekels to citizens and businesses for damages incurred from the wars on various fronts since October 7, according to data released by the Tax Authority. Nearly 1.18 million claims for property and business damage have been filed, not including compensation for reservists. The payments cover two types of damages: indirect, such as lost income for businesses due to the security situation, and direct, for damage to structures, vehicles, and equipment. Indirect damages account for the majority of the payouts, with over 1 million claims receiving about 30.3 billion shekels. Of this, 22.4 billion shekels were for Operation Iron Swords, 2.9 billion for Operation With All Your Might, and 5 billion for Operation Breaking the Silence. The nationwide track, covering general expenses, processed about 830,000 claims totaling 18.6 billion shekels. "Green" tracks for businesses in heavily impacted areas and sectors paid out 6 billion shekels for 169,000 claims. Notably, the "red" track for border communities, despite only 7,794 claims (less than 1% of indirect claims), paid out 5.68 billion shekels, nearly a fifth of all indirect damage compensation. The northern border received 2.53 billion shekels and the Gaza envelope received 1.9 billion shekels. Direct damage claims reached about 168,000, resulting in 8.3 billion shekels in payments, with 6.37 billion shekels for damage to structures. Operation With All Your Might was the costliest in terms of direct damage, with 4.03 billion shekels paid out, despite fewer claims than Operation Iron Swords. The data also indicates a shift in the impact on the home front, with Ashkelon initially being the primary focus for direct damage claims during Operation Iron Swords, while Tel Aviv became the main center during Operation With All Your Might and Operation Breaking the Silence. Tel Aviv and Ashkelon together accounted for nearly three-quarters of all direct damage claims since October 7. The claims process is ongoing, with over 40,000 indirect damage claims still pending, and the compensation fund has decreased from 17.7 billion shekels in October 2023 to 3.1 billion shekels.