Bertelsmann Index: The Houthis are openly blackmailing banks in Sana'a
English - Sunday 13 March 2022 الساعة 08:35 am
Aden, NewsYemen, special:
The German Bertelsmann Foundation said that the Houthi militia funds its networks and supporters, mainly from taxes and fees, stressing that the Houthis are openly involved in extorting banks in Sanaa.
In its report, "Bertelsmann-Stiftung's Transformation Index 2022", the foundation emphasized that the Houthis collect revenue through innovative taxation, extortion, kidnapping, confiscation and embezzlement of humanitarian aid.
The report, which covers the past three years and assesses the transition to democracy and a market economy in 137 countries, confirmed that the Houthi militia amended the interpretation of the Zakat law in 2020, imposing a new tax of 20% on some businesses.
The report pointed out that the Houthi militia systematically transferred the religious zakat tax, which further paralyzed the budgets of local councils.
The Bertelsmann report said that the beneficiaries of this additional income, the Houthi family and other families claiming descent from the Prophet Muhammad, are called the "Hashemite tax."
According to the report, import, export and foreign currency licenses are granted only to Houthi militia supporters, giving some companies an opportunity to control the market.
He added, "Doing business in Yemen is more difficult than ever, and the World Bank ranked Yemen 188th in the "Trade Across Borders" category in its Doing Business 2020 report.
The UN Panel of Experts regularly reports on cases of Houthi militia “unlawful enrichment,” through the transfer of frozen assets and public funds, as well as money laundering, and corrupt practices.
The private sector has taken over many of the services that were provided by the state, however, investment in the economy may have to absorb the reality of the emergence of a tax-based system in areas controlled by the Houthi militia.
The report pointed out that the Houthi militia confiscated private property, raided banks, imposed a war tax on salaries and held hostages for ransom to finance their operations, and they began taking 20% of the products of certain industries.
