Israeli Families Pay 8,000 Shekels Annually in 'Silent Terror Tax' to Crime Groups

A new comprehensive study by the New Guard organization and the Rifman Institute reveals that each Israeli family pays approximately 8,000 shekels annually as a "silent terror tax" to criminal organizations. This figure is based on data from the Ministry of Finance, the Tax Authority, and the State Comptroller, highlighting how protection rackets and thefts cost the Israeli economy about 23 billion shekels yearly. The report shows that these criminal activities directly inflate prices in housing, food, and car insurance sectors.

The construction industry faces protection costs of up to 5% of project budgets, increasing apartment prices by tens of thousands of shekels. The automotive sector has seen a 56% surge in car insurance premiums over two years due to thefts and vandalism. In agriculture, 93% of farmers in the Eastern Galilee and 90% in the Negev report extortion and threats, reducing local produce supply and driving up fruit and vegetable prices in supermarkets.

Joel Zilberman, founder and CEO of the New Guard, stated, "The public pays a double tax: once to the state and again to crime groups. When contractors allocate 5% of their budgets to criminals, it becomes a national crisis affecting every household." On Rifman, vice president of education and co-founder, warned about social consequences, emphasizing that many families struggle to afford extracurricular activities for children, risking a lost generation without equal opportunities.

Hagai Reznik, head of the Rifman Institute for Negev Development, described the issue as a systemic failure where parts of Israel operate outside state control, stifling economic growth. The New Guard calls on the government to urgently implement a national plan combining stronger enforcement, aggressive economic measures against crime groups, and enhanced protection of construction and agricultural sites to prevent further damage to Israel's middle class.