Arbitrary measures: Houthis fight Yemeni private sector to establish their own parallel economy

The terrorist Houthi militia is practicing a campaign to clamp down on the private sector in Yemen by implementing arbitrary measures and imposing taxes on the sector without a legal basis.

On Sunday, May 28, the Federation of Yemen Chambers of Commerce and Industry, in an official statement, accused the Houthi militia of continuing its arbitrary measures towards the private sector and commercial companies in the areas where the Houthis are spread without a legal basis or a judicial ruling.

Abusive practices

The federation explained that the Ministry of Industry and Trade in the Houthi government closed down companies and commercial establishments in the capital, Sanaa, without issuing court rulings or orders from the competent prosecution.

The ministry's office in Sanaa was also accused of detaining cars loaded with goods belonging to a company without legal justification, opening them by force, disposing of the goods, and forcibly selling them in violation of all the laws of the earth and the sky, as stated in the statement.

It pointed out that the Houthi authority has become a sword drawn against private sector companies, abusing power to achieve points in the militia’s favor at the expense of the ruin and bankruptcy of companies.

Capital flight

According to the statement, the arbitrary measures included imposing price lists that violate the law, the constitution, and the free market system, in violation of the competitive market system, and imposing fines without any legal justification in contravention of the constitutional principle that there is no fine or fee except by an explicit legal text, as well as the seizure of locomotives owned by traders in the customs ports in violation of the law for days and weeks.

The Federation of Yemen Chambers of Commerce and Industry warned that the continuation of the Houthi measures and practices will lead to the migration and displacement of national capital in search of commercial and economic security.

The private sector disclaimed its responsibility for the unavailability of goods in the market, saying that a meeting date will be set for all its employees to discuss and take the necessary measures in this regard.

Houthi justifications

The Houthi militia, through the measures it takes against merchants, is trying to score points in favor of the influential Houthis, even if this leads to the destruction of companies and merchants.

The terrorist militia announced on Monday, May 29, that it had approved three bills to raise the price of the sales tax, income taxes, and customs.

The Houthi government approved projects presented by Rashid Abu Lahoum, one of the most prominent Houthi men in charge of extracting revenues, which stipulate amendments to Sales Tax Law No. 19, Income Taxes Law No. 17 and Customs Law No. 14.

The Houthis stated that the new amendments aim to protect the local product in front of imported goods, explaining that the amendments to the sales, income taxes and customs laws will achieve self-sufficiency.

Exorbitant royalties and taxes

In the same context, Dr. Ali al-Assad, professor of political science and economics at Sanaa University, said that the private sector in Yemen has been suffering since the Houthis took control of the country's reins, as the Iranian-backed militia imposes exorbitant royalties and taxes on merchants and the private sector.

Assad confirmed in a special statement to the Reference that the Houthi militia has worked, since its arrival, to establish a parallel economy of its own far from the country's economic system.

Assad added that the militia established a system based on exercising guardianship over the country's economic and financial aspects and imposed its hegemony over institutions related to the economy, such as oil revenues, communications and money exchange.