Houthi militia imposes new levies on gold shops in Sana’a, increasing financial pressure on local businesses.

In recent days, the Houthi militia has launched a campaign to impose new taxes on gold shops in the capital, Sana’a. According to reports from Asharq Al-Awsat, the militia has targeted jewelry stores, enforcing payments under various pretexts, including “fine collection,” “donations for sectarian events,” and “penalties for neglecting to support the war effort.”

Scope of the Campaign

Sources indicate that the Houthi tax collection efforts have affected approximately 40 gold and jewelry shops in the Ma’in district, particularly along Riyadh Street, in the vicinity of the Sanina market, and on Jamal Street in the Al-Tahrir district. The campaign also extended to other commercial complexes in various areas of the city.

Forced Payments and Intimidation Tactics

The militia has compelled shop owners, regardless of their store size, to pay amounts ranging from $93 to over $460 (between 50,000 and 250,000 Yemeni rials), using a fixed exchange rate of 530 rials per dollar. Abdullah M., a jewelry trader in Sana’a, reported that several shops closed within two days of the new tax campaign’s initiation, with some owners kidnapped and released only after paying the demanded amounts.

Escalating Taxation and Economic Pressure

Traders have noted an unprecedented increase in Houthi tax collection activities targeting jewelers and the general population in Sana’a. According to Abdullah, the militia forces jewelry shop owners to pay estimates based on their inventory size, effectively squeezing the remaining traders and aiming to replace them with loyal supporters.

Complaints from Jewelers

Shop owners affected by the Houthi campaign have voiced their frustrations over the militia’s coercive measures and extortion tactics. They claim that the militia frequently launches campaigns to collect cash under various guises, primarily for funding military fronts and supporting events.

Impact on Local Businesses

The ongoing targeting by the Houthis has prompted many jewelers in Sana’a and other areas under their control to shut down their businesses. Some have halted operations altogether, laying off employees in protest against the militia’s actions, which they perceive as systematic theft of their remaining resources.

Call for Action Against Houthi Abuses

Jewelers in Sana’a are urging authorities to put an end to the repeated abuses by the Houthi militia against the remaining players in the gold and jewelry sector, as well as against all residents in areas under militia control.

Historical Context of Houthi Exploitation

This recent wave of extortion follows a previous campaign in mid-2022, which resulted in over 22 jewelry shops closing due to fears of organized tax collection and armed robberies carried out by Houthi militants. Since seizing control of Sana’a and other cities, the Houthi militia has consistently sought to increase the taxes and levies imposed on residents and traders, enacting laws that raise tax, customs, and zakat fees to fund their military efforts and enrich their leadership.

The situation continues to evolve, with traders and residents alike facing mounting pressures from the Houthi militia’s relentless taxation practices.

 

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