$ 7 billion sources of funding Houthi militias in 2019 expected
English - Wednesday 31 July 2019 الساعة 08:58 am
By Sadiq al-Hakim – NewsYemen.net
- 1,459 billion riyals (trillion and a half) from inside Yemen
- $ 2 billion from Iran and Iran's arms in Iraq, Syria and Lebanon
- $ 2 billion from the international humanitarian and food aid
There are many financial sources to finance the Houthi militias whether directly or indirectly, divided into two parts:
1. Local sources
2. External sources
First: Domestic financial resources
The local financial sources of the Houthis' immediate militias are:
A) State revenues which are divided into:
1- Income of Tax Authority
2- Revenues of the Customs Authority
3. Revenues of Central credits
4- Revenues of Zakat duties department
1- Revenues of the Tax Authority:
The report of the United Nations Panel of Experts on Yemen in the last annual report S / 2029/83 stated in paragraph 99 that at least 407 billion riyals are under the authority of the Houthi militias as a result of their regular collection of revenues from licensing fees applied to telecommunications and others during the fiscal year 2018
It is expected that the estimate tax revenues during the fiscal year 2019 will be more than 800 billion riyals in areas controlled by the Houthi militias
For several reasons, the most important: the rise in inflation and prices of goods and services by more than 170%, the collapse of the purchasing power of the Yemeni riyal, which is reflected in increasing of the income of traders and various companies, as a company or traders, which was making profits of one million riyals in 2014 will achieve profits of two and a half million riyals end of 2019
Thus, the increase in tax awareness and the increase in the value of taxes collected, in addition to the high collection of many types of tax revenues by up to 300% compared to 2014 such as: income from real estate taxes and professional tax and commercial and industrial profits tax
1 - Taxes on individuals income
It is expected to reach 70 billion riyals by the end of 2019. It includes salaries and tax wages of employees in the in the administrative apparatus of the State, the public and mixed sectors, the private sector and the free professions. The exclusion of salaries and wages taxes in the areas of the Legitimate government and the administrative staff of the State, who did not receive their salaries in the areas controlled by the Houthis
2 - Taxes on companies income
It is expected to reach 300 billion riyals, the most important of which is the profit tax of banks and financial institutions, which is expected to exceed 120 billion
As well as revenues of telecommunications taxes and that is expected by 130 billion riyals
The collection of revenues from other taxes on the income of companies and other projects is estimated at 50 billion riyals
3. Taxes on goods and services
It is expected to reach 400 billion riyals that includes taxes on goods and tax sales services like fuel sales, which is expected to reach 90 billion riyals
Domestic and imported cigarette taxes are expected to reach 100 billion riyals, and other taxes amounting to 210 billion riyals within the taxes of goods and services
4. Tax revenues for the rest of the tax revenues are expected to reach 30 billion riyals
2- Revenues of the Customs Authority:
It is expected that Militias are to receive 300 billion riyals of customs revenue during 2019
The report of the United Nations Panel of Experts on Yemen in its last annual report (S / 2029/83) states in paragraph 100 that Houthi militias continue to collect customs duties and fees in al-Hodeida and its ports and customs points in Dhamar, al-Bayda and Amran and others
The report states in paragraph 101 that the militias received in 2018 the amount of 131.9 billion riyals against fees on oil derivatives received through the ports of al-Hodeida only
During the first half of fiscal year 2019, according to the Economic Commission's website, the average monthly oil derivatives reached al-Hodeida port were 184,384 tons per month, equivalent to 249 million
liters per month, 2.9 billion liters per year .. financial revenues amounting to 143.9 billion riyals annually. The total fee per liter is 48.19 Y.R / liter as follows:
It is also expected that the militias will receive 156 billion riyals of other customs duties on goods and foodstuffs received through the ports of al-Hodeida and customs points at the entrances to the provinces under the authority of the Houthi militias
3. Income of central Credits
This account is concerned with collecting the revenues of the State from: Sales of crude oil and gas State
It is expected to exceed the profits' share 300 billion riyals, of which 200 billion riyals the share of the state in the profits of the Central Bank only
4 - Revenues of Zakat Department:
It is expected that the Militias are to receive 59 billion riyals in fiscal year 2019
Note: 90% of the highest taxpayers, in accordance with the Tax and Customs Law as well as the status of companies, banks and public and private institutions, are located in the Capital Sana'a, under the Houthi militias' control
(B) indirect domestic sources:
The indirect local financial resources are the value of money, property, houses, valuables, land, private and public vehicles that the militias loot by force of arms, murder and imprisonment, as well as royalties collected without any legal justification. It is expected to exceed hundreds of billions of riyals and hundreds of millions of dollars
For example, confiscation of property of the presidents of the Republic, ministers, sheikhs, officials ... and others, carried out by al-Houthi through Saleh Musfer al-Sha'er, and the so-called judicial guard
Second: External sources
1 - Iran's financial, military and logistical support, as well as the support of the Iraqi and Lebanese militias for the Houthi militias, which is expected to exceed $ 2 billion annually, in amounts exceeding $ 1.5 billion annually and smuggled in commercial containers through the port of al-Hodeida and al- Salif seaport
In addition to free in-kind goods and forged documents, such as oil derivatives, miscellaneous goods, vehicles and equipment
2 - Looting international humanitarian aid in cash, in-kind goods and technical, which exceeds at least $ 2 billion annually, including $ 1.3 billion food aid, provided through the World Food Organization and various international and regional organizations
