Houthi Militia Imposes New Cement Sales Tax, Raising Construction Costs

The Houthi militia has introduced new taxes on cement sales, a move expected to escalate construction expenses and impose further financial burdens on citizens already grappling with severe economic conditions.

A circulating document indicates the group's intention to increase customs duties on cement, with the decision slated for implementation at the beginning of October. This follows a previous increase that raised duties from 480 to 700 Yemeni Rials.

Economic expert Ali Al-Twaiti has criticized the decision to raise customs and sales taxes on cement, warning of its repercussions on the construction sector and the employment opportunities it provides. Al-Twaiti stated that the construction sector is a significant source of income for numerous workers, and that increased taxes could lead to a decline in urban development activities and a reduction in demand for building materials, consequently impacting job prospects and exacerbating unemployment and economic stagnation.

He further pointed out that the decisions made by the Houthi-controlled Ministry of Finance and Customs Authority regarding tax increases do not consider the difficult living conditions faced by citizens and job seekers.

Al-Twaiti cautioned that the continuation of such policies, characterized by escalating taxes and financial obligations, could result in deeper economic recession, increased unemployment, and a diminished purchasing power for the populace.