Houthis Double Customs Duties; Tariffs

The Houthi militia is preparing to increase customs duties rates on goods; increase tariffs and raise the exchange dollar rate from YR250 to YR600.

The militias imposed multiple taxes on goods arriving from areas under the control of the legitimate government or through Hodeidah port; in a country that imports 90 percent of its needs.

Conflicts between the group’s wings have intensified; according to reports claiming that the factions argue over funds and recruitment to cover the lack of fighters on the Marib; al-Bayda; and al-Jawf fronts.

The group had already doubled the tax and customs duties on goods and also merchandise several times.

In 2017; the militias approved increasing the taxes on mobile; landline; and also internet services and raising taxes on domestic and imported cigarettes.

Taxes on mobile services increased from 10 percent to 22 percent; and further the local and international phone services from 5 percent to 10 percent.

Taxes on domestic and imported cigarettes; tobacco; and further molasses were raised to 120 percent from 90 percent.

Last year; a study by the Economic Media Center reported that the Houthi militia amended the tax and customs laws and introduced new articles; including amendments to Law No. 17 of 2010 on income taxes and a draft law for the year 2020 amending law No. 19 of 2001 on general sales tax.