Businesses damaged through extortion to be assisted by NIS 35 million program backed by Smotrich

Smotrich's plan includes compensation worth tens of millions of shekels for victims of protection-money extortion, aiming to enable those the have suffered protection payments to refuse to pay.

The Finance Ministry published final procedures on Wednesday for a NIS 35 million pilot program that will compensate uninsured businesses for direct property damage caused by protection-money extortion, after Finance Minister Bezalel Smotrich advanced the measure.

The pilot, which is set to begin on Thursday and continue for about two months in its first stage, is meant to address the phenomenon of protection-money extortion, which constitutes a heavy economic burden on business owners.

It will do so by providing an economic safety net that will help businesses maintain operational continuity and encourage them to cooperate with law enforcement authorities, thereby assisting the effort to reduce the phenomenon.

The new framework offers compensation for direct property damage to business owners caused by protection-money extortion when that damage is not covered by insurance.

It will be operated by the Israel Tax Authority Property Tax Division and will be accompanied by close monitoring of effectiveness indicators to examine its success, its assistance to enforcement bodies, and the extent of its contribution to creating a safer business environment.

In practice, Smotrich's plan includes compensation worth tens of millions of shekels for victims of protection-money extortion, aiming to enable those the have suffered protection payments to refuse to pay, knowing they will receive backing from the Israeli government.

Smotrich's decision provides a response for extorted businesses that were harmed and are not insured against damage from protection-money extortion, while encouraging business owners to cooperate with law enforcement authorities. The decision sets out a clear and innovative implementation framework, and the pilot is expected to begin as soon as possible.

Smotrich to uninsured businesses: 'Do not pay protection money'

"We are copying the settlement revolution in Judea and Samaria to the Negev and the Galilee, through the establishment of dozens of communities, agricultural farms, and a change to the legislative mechanism," said Smotrich. "As a first step, we are providing a safety net to farmers and business owners harmed by protection-money extortion and protection-money offenses.

He called on business owners to "not pay protection money," emphasizing that "The State of Israel stands behind you."