The Finance Ministry has published procedures for a NIS 35 million pilot program to reimburse uninsured businesses for direct property damage caused by protection-money extortion. The pilot, led by Finance Minister Bezalel Smotrich, begins Thursday and will run about two months in its initial phase. Administered by the Israel Tax Authority's Property Tax Division, the program aims to help businesses stay operational, encourage cooperation with law enforcement, and be closely monitored using effectiveness indicators.
Israel Launches NIS 35 Million Pilot To Compensate Businesses Victimized By Protection-Money Extortion
Finance Minister Bezalel Smotrich attends a ceremony marking the establishment of the new Israeli settlement of Ma'ale Arugot in Gush Etzion, in the West Bank, September 2, 2026. (photo credit: CHAIM GOLDBERG/FLASH90)
The Finance Ministry on Wednesday published final procedures for a NIS 35 million pilot program designed to reimburse uninsured businesses for direct property damage caused by protection-money extortion. The measure, advanced by Finance Minister Bezalel Smotrich, is intended to help businesses recover losses and to encourage owners to refuse further payments to extortioners.
The pilot is scheduled to begin on Thursday and will run for roughly two months in its initial phase. Officials say the program will provide an economic safety net to help affected businesses maintain operations while incentivizing cooperation with law enforcement — a step they hope will weaken organized extortion networks.
Scope and Administration
The scheme covers direct property damage resulting from protection-money extortion when those losses are not covered by private insurance. It will be administered by the Israel Tax Authority's Property Tax Division and will include close monitoring of effectiveness indicators to evaluate the pilot's success, its assistance to enforcement authorities, and its impact on the overall business environment.
Illustration of a sign leading to the Tax Authorities offices in Jerusalem. (credit: FLASH90)
Practical Impact
In practical terms, the initiative aims to provide tens of millions of shekels in relief to victims, removing a financial barrier that may have forced businesses to continue paying protection money. Authorities say the pilot sets out a clear implementation framework and should encourage greater cooperation with police and other enforcement bodies.
Political Framing
"We are copying the settlement revolution in Judea and Samaria to the Negev and the Galilee," Finance Minister Bezalel Smotrich said, adding that the program is a first step to offer a safety net to farmers and business owners harmed by protection-money extortion. "Do not pay protection money. The State of Israel stands behind you."
The announcement included an illustrative image of a sign directing people to the Tax Authority offices in Jerusalem. Authorities will track performance metrics during the pilot to decide whether to extend, expand or modify the program based on observed results.
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