35 million shekels for protection racket victims in Israel: compensation pilot launched

The Ministry of Finance is launching a compensation pilot totaling 35 million shekels for business owners and farmers harmed by protection racket crimes. The plan, managed by the Property Tax Authority, will allow claims for direct property damage not covered by insurance, provided a police complaint has been filed. The pilot is expected to last about two months.

The Ministry of Finance is launching a compensation pilot totaling 35 million shekels for business owners and farmers affected by protection racket crimes. The plan, managed by the Property Tax Authority under the Israel Tax Authority, will open tomorrow (Thursday) and operate for about two months. Compensation is intended for direct property damage not covered by insurance, provided an official police complaint has been filed. The pilot was approved by the government at the end of June, after being first revealed by ynet. Finance Minister Bezalel Smotrich called on business owners not to pay protection money, stating that the state stands behind them. Finance officials criticized the police and the Ministry of National Security, claiming that large budgets were not translated into security on the ground. According to a State Comptroller report from April 2026, 87% of contractors in the country were forced to pay protection money. The pilot represents an official recognition of the state's failure to protect protection racket victims.