International Network: Houthi double taxes will cost merchants losses and Yemeni families will lose income opportunities

An international network warned of the repercussions of the Houthi taxes that have been doubled over the past two years on traders of imported clothing and leather goods, suggesting that they will lead to traders incurring losses in profits and a number of Yemeni families will lose opportunities to earn income.

This came in a recent report by the Famine Early Warning Systems Network ( FEWS NET ) on food security in the country.

The network said that the Houthi authorities continue to intensify their efforts to increase revenues and replenish depleted cash reserves through taxes imposed on imported goods.

"As of September 1, the Houthi authorities in Sanaa have significantly increased taxes on imported clothing, shoes and bags," she added.

She stated: “Taxes of 30 million Yemeni riyals (in old currency, the dollar is equivalent to about 536 riyals) are now imposed on each commercial truck, which represents a 50 percent increase compared to 20 million Yemeni riyals per truck in 2023 and a 200 percent increase compared to 10 million Yemeni riyals per truck in 2022.”

She pointed out that "in areas controlled by the internationally recognized government, official taxes on similar commercial trucks are 97 percent lower, amounting to one million Yemeni riyals per truck in the equivalent currency."

The report confirmed that the Houthi authorities "continue to prevent the movement of all commercial goods into their territories that were imported through ports controlled by the internationally recognized government, in an attempt to redirect imports through Red Sea ports."

He pointed out that the militia is intensifying the imposition of informal taxes on local companies, noting that "in July (last), it was reported that 1,161 shops and companies in Sana'a were raided, extorted and closed by the group's authorities, while about 90 merchants and workers were assaulted."

The report noted that "traders are likely to face profit losses, and some families whose livelihoods depend on these supply and marketing chains are likely to lose income-earning opportunities."

In early September, Bab al-Salam merchants in Sana’a declared a general strike in protest against the Houthi increase in taxes on clothing, shoes and bags.