290 billion riyals in tax revenues in 2021
English - Tuesday 15 February 2022 الساعة 10:42 am
Aden, NewsYemen, special:
Tax revenues in areas under the control of the legitimate government recorded 290 billion riyals in 2021, equivalent to 1.2 billion dollars, compared to 200 billion riyals in 2020, according to a report by the US Agency for International Development.
The agency said support for its Economic Recovery and Livelihoods Program in Yemen has contributed to a nearly 50 percent increase in tax collection, thanks to the enhanced revenue management capacity.
USAID added that its support lays the foundation for a new tax system, and highlights the benefits and positive gains that will come from proposed tax reforms, including greater transparency.
"At this stage, we are working on quick but wide-ranging reforms that will have long-term and deep-rooted effects," the agency quoted Mohamed Salem Qarawan, undersecretary of the Tax Authority, as saying.
He added, "The reforms aim to strengthen the role of the tax authority in financing the public budget and revenue collection, and to facilitate the tax process - including through the automation of tax procedures - while enhancing transparency in accordance with international standards."
It stated that her Economic Recovery Program experts look at lessons and best practices gained from experiences in other Gulf region countries to guide recommendations on new tax scenarios in Yemen. The aim is to increase government revenues without adding an unfair financial burden on those with the least means.
According to USAID, their proposed reforms include replacing the current sales tax system with a selective tax that can be applied to certain goods or services (such as cigarettes, soda, and recreational activities).
In addition, the Economic Recovery and Livelihoods Team's proposals identified a transition strategy for the adoption of the value-added tax system, along with a framework for improving the efficiency of taxpayer registration, tax audits, and return processing.
The experts of the USAID program recommended improving transparency and accountability within the Yemeni tax system, and reforms that include measures to modernize and digitize the tax collection system.
The agency stressed that the reforms implemented by Yemen include a focus on enhancing capacities among tax officials, and combining increased responsibility and participation with stronger anti-corruption awareness and practices.
