Arbitrary royalties imposed by Houthis militias on retail shops and cafes in Yemen’s Ibb governorate drove local traders to go on an open strike, protesting the illicit levies being collected by the Iran-backed group.
Merchants closed their commercial stores, citing tax abuses carried out by Houthi Zakat office representatives against their shops.
Ibb residents reported to Asharq Al-Awsat that a number of shops, following the open strike, closed their doors in al-Mushanna district on Wednesday.
Residents said that the Houthi-run tax office in the governorate was charging merchants astronomical fees despite the group’s leadership in Sanaa exempting small-scale traders from paying royalties.
The exemption was granted on the basis of the crisis created by the coronavirus and global recession.
Merchants in Ibb demanded equality with their counterparts in other governorates. They also expressed their willingness to pay 2020’s due taxes so long that they match 2019’s fees.
Their offer comes despite the economic stagnation caused by the coronavirus pandemic and the losses they incurred.
The Houthi militia tax office, however, refused the offer and doubled the taxes.
Local market rapporteur Mohammed Jarallah al-Salihi confirmed that the strike will remain in place until the demands put forth by merchants are answered and Houthis understand the emergency situation they are facing.
Salihi said that the Houthi tax office refuses to grant merchants official statements for their accounts, confirming that all merchants have paid their due tax, but that the Houthi-run office was demanding other unlawful payments.
“The Houthi tax office raised tax fees this year in an exaggerated manner, despite the fact that trade activity witnessed a recession as a result of the war and the restrictions imposed by the coronavirus,” a local Ibb trader, speaking under the conditions of anonymity, told Asharq Al-Awsat.
It is worth noting that the open strike coincided with a campaign launched by activists in Ibb to hold the Houthi authority in the governorate responsible for the death of a family of six, poor services, and security failure.
