Crime Costs Israeli Households 8,000 Shekels Annually, Study Finds

The organization "The New Guard," which supports and protects Israeli farmers, released a study on Sunday revealing that each household in Israel pays approximately 8,000 shekels annually as a hidden tax due to crime and the spread of extortion. Conducted in collaboration with the Rifman Institute, which works to improve governance in the Negev, the study estimates that the public is extorted of 23 billion shekels yearly through various channels, including increased car insurance premiums and business extortion costs passed on to consumers.

The report highlights a 56% rise in car insurance prices over two years. In the construction sector, extortion costs account for about 5% of each project's budget, inflating housing prices. The study also notes that around 93% of farmers in the Eastern Galilee and 90% in the Har Negev region report facing extortion and threats, which in turn affects food prices.

Based on data from the Ministry of Finance, the Tax Authority, State Comptroller reports, and national surveys, The New Guard calls on the government to implement a national plan to strengthen law enforcement on the ground, increase economic enforcement against crime organizations, and enhance protection for farmers and construction sites. Yoel Zilberman, founder and CEO of The New Guard, stated, "The public in Israel pays a double tax - once to the state and once to crime organizations. This is no longer just a peripheral issue but a national crisis affecting every household. Crime is not only a personal security issue but a key driver of the high cost of living. Restoring governance is the most important economic step Israel can take."

Hagai Reznik, head of the Rifman Institute, added that the research reveals a deeper systemic failure beyond isolated price increases. He explained that in various parts of Israel, the state is no longer the sole organizer of economic activity. When entrepreneurs, farmers, and contractors operate amid uncertainty and threats, the entire economy loses vital growth engines.