The government raises the price of the customs dollar to 750 riyals
English - Tuesday 10 January 2023 الساعة 03:07 pm
Aden, NewsYemen, exclusive:
Two government sources said that the government decided to raise the price of the customs dollar, which is used to calculate customs duties on non-essential goods in the areas under its control, by 50 percent.
One of the sources confirmed to "Newsyemen" that a meeting that brought together the leadership of the Ministry of Finance and the Customs Authority, yesterday, Sunday, led to moving the price of the customs dollar from 500 riyals to 750 riyals, and this increase is the second for the price of the customs dollar since July 2021.
He added, "The decision to raise the price of the customs dollar does not include basic commodities such as flour, sugar, cooking oil, fuel, wheat, rice, milk, and medicines."
He pointed out that there are other measures to apply an increase in many fees, as many of them have not been amended since 2001 despite the high inflation and the deterioration of the exchange rate of the Yemeni riyal, and there are more than 50 types of fees.
From this increase, the government seeks to improve its weak financial position by raising customs revenues to one trillion and 50 billion riyals for the fiscal year 2023, to face the crisis of stopping oil exports on public finances, after the Houthis imposed an oil export ban in October 2022.
In July 2021, the government raised the price of the customs dollar by 100% from 250 riyals to 500 riyals in its areas of control, with the aim of raising customs duties revenues from about 350 billion riyals annually to 700 billion riyals.
The customs rate is still far from the current market exchange rate of 1,270 riyals to the dollar in the capital, Aden.
The Houthis responded to the government's decision in 2021, by raising customs prices in the ports they introduced by 50%, as merchants suffer from double customs and tax collection of goods between the two authorities, which are ultimately paid by the citizen.
It is certain that the government's decision to raise customs will burden the citizens, who suffer from the cost of living crisis, especially in light of the weakness and absence of regulatory, governing and controlling agencies.
Yemen imports 90 percent of its needs from abroad, and according to the latest statistics of the Ministry of Industry and Trade, Yemen's total imports amounted to $8.9 billion in 2020, compared to $11.3 billion in 2012.
