Arab world

Houthi Eid taxes burden Sana'a residents and deepen the crisis

Residents of the Yemeni capital, Sana'a, and its surrounding countryside are living through extremely complex economic and humanitarian conditions, which worsen significantly with the arrival of holidays and religious occasions. The "Eid levies" imposed by the Houthi group add an extra burden on both citizens and merchants, turning the joy of Eid into daily worries about securing basic necessities and meeting ongoing financial demands amidst deteriorating living conditions.

General context and historical background of tax policy

Since the Houthi group seized control of the capital, Sana'a, and state institutions in late 2014, it has pursued an economic policy heavily reliant on collecting funds from citizens and the private sector under various pretexts. Over the years, religious occasions such as Eid al-Fitr, Eid al-Adha, and the Prophet's Birthday have become key seasons for fundraising. These levies are imposed under different justifications, including supporting the "war effort," collecting "zakat" (Islamic alms) at arbitrary and inflated rates, or sending Eid convoys to fighters on the front lines. These systematic practices have depleted the financial savings of the population, especially given the suspension of government employee salaries since 2016, leaving a large segment of Yemenis entirely dependent on humanitarian aid or remittances from expatriates abroad.

The importance of the event and its local impact on the residents of Sana'a and its countryside

Locally, these forced levies have a disastrous and direct impact on the daily lives of citizens. Merchants and shop owners, both large and small, are forced to pay exorbitant sums to avoid closure or arrest, which is immediately reflected in the prices of basic goods and clothing. As a result, ordinary citizens find themselves completely unable to provide for their families' needs, such as Eid clothing and food. The situation is not much different in the rural areas surrounding Sana'a, where harsh taxes are imposed on farmers and livestock breeders, weakening the local agricultural sector and increasing poverty and unemployment rates in the villages and districts surrounding the capital, forcing many to abandon their land.

Regional and international repercussions of the economic crisis

Regionally and internationally, these practices highlight the complexities of the Yemeni crisis, which the United Nations has repeatedly described as one of the world's worst humanitarian crises. The continued imposition of levies and the drying up of citizens' sources of income hinder regional and international peace efforts, deepening the economic divide and exacerbating social tensions. These policies also increase the burden on international and relief organizations, which are struggling to bridge the food gap at a time when they face significant challenges in funding their humanitarian programs in Yemen. The continuation of this approach threatens a complete economic collapse in Houthi-controlled areas, necessitating serious international intervention to pressure for the economy to be depoliticized and for salaries to be paid to alleviate the suffering of millions of innocent Yemenis.

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