Iran-backed Houthis preparing to impose a real estate tax in their controlled-areas

The Iran-backed Houthis are preparing to impose a new tax on citizens in the capital, Sanaa, and the governorates and areas under their control, in the name of the "real estate tax", in clear disregard for the effects and repercussions of the war that sparked it and caused the deterioration of the national currency, inflation, high prices, goods and services, and the interruption of the salaries of state employees and the pensions of retirees.

The Houthis seek to obtain a new financial resource in addition to the huge financial resources they collect through illegal tax and customs fees at the ports, fees for goods and services, revenues from oil derivatives, domestic gas, communications, cement, cigarettes ... ect.

The Houthi leadership claim that the real estate tax is one of the "unpaid" taxes, which confirms their endeavor to find a new resource to enhance their economic capacity, finance war and military operations, and enrich their leaders.

The head of the Houthis' Supreme Political Council Mahdi Al-Mashat issued a decree to establish real estate documentation pens in the capital and the governorates of Sanaa and Sa'ada, and to work on the speedy launch of work there.

The Houthis seek to collect a tax on the total value resulting from the transfer of property ownership, including all land and real estate, whether the transfer or sale of property in whole or in part. They also aim to impose a tax on commercial transactions related to the sale and purchase of real estate and land under the Profit and Lease Law that ended with ownership and participation.

Experts warn of the danger of this step, which will burden the Yemenis and exacerbate their already deteriorating humanitarian conditions, considering that the decision perpetuates the Houthis' political and economic dominance in their regions and completely contradicts their claim that they are seeking to end the war and achieve peace.

After more than eight years of war, millions of Yemenis are suffering from the worsening effects of armed violence, the ongoing economic crisis, and the disruption of public services. This year, an estimated 21.6 million people will be in need of humanitarian assistance and protection services.

The final report of the Panel of Experts on Yemen submitted to the Security Council last February confirms that about 70% of Yemen's total tax revenues, including customs duties, come from areas controlled by the Houthis.

"The main activities of banks and various funds, including pension funds, exchange companies, telecommunications companies, importers, large companies and other commercial entities, are being carried out in Sana'a". The report says.