German institution: Al-Houthi transfers "religious zakat" to the benefit of his family
English - Monday 14 March 2022 الساعة 06:38 pm
Aden, NewsYemen:
The German Bertelsmann Foundation confirmed that the Houthi militia finances its networks and supporters, mainly from taxes and fees, noting that the Houthis are openly involved in extorting banks in Sanaa.
In its report "Bertelsmann-Stiftung's Transformation Index for 2022", the foundation said that the Houthis are collecting revenue through innovative taxation, extortion, kidnapping, confiscation and embezzlement of humanitarian aid.
The report pointed out that the Houthi militia amended the interpretation of the Zakat law in 2020, and imposed a new tax of 20% on some businesses.
He explained that the Houthi militia has systematically transferred the religious zakat tax, which has 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 indicated that the Houthi militia expropriated private property, raided banks, imposed a war tax on salaries and held hostages for ransom to finance its operations, and began taking 20% of the products of certain industries.
