Caused by sales taxes and price hike: Fears for Yemen’s internal status [Archives:2005/825/Front Page]

By Yemen times staff
Sana'a & Taiz bureau
Tens of Yemeni people rushed into the streets in a demonstration against price hikes in the last two days March, 17 and 16.

The processions, which took place in various governorates simultaneously were public's reaction to the skyrocketing of the basic commodities leaving more than 50% of the population economically vulnerable.

In Sana'a, merchants and grocery shopkeepers closed their stores, while hundreds of people joined the peaceful demonstrations in streets expressing their protest against the price modifications represented in the sales taxes.

Whereas the scene in Hodeidah was more hyper as hundreds of people went out to streets shouting with wrath against the rise of prices that negatively influenced the necessary goods.

Even university students were intrigued by this outrage.

About 3000 students protested inside the compass of the Faculty of Engineering and the Faculty of Law in Hodeidah demanding just treatment of the educational staff at the universities and siding by their teachers, who have maintained their strike for the last couple of months so far.

There were a few gun shots and clashes with the police there in Hodeidah on Tuesday.

Simultaneously medium-sized vehicles quit their works in protest against the new fees on vehicles by the municipality and the city fund in Abyan. In the same time merchants forwarded a plea to the governor in demand for decreasing the taxes that caused the skyrocketing of prices.

In Aden, the police on Wednesday had some clashes with the people and tried to stop the processions.

While Yemenis in Al-Dhale'a are going through the same rage. Merchants there have supported the others of Sana'a, Abyan, Hodeidah, and Aden when people held a strike closing their shops, stores, and markets.

On Wednesday, the information stated that there is a complete strike in Aden as well and it may extend in the coming days to include the other governorates.

A number of observers of the conditions showed their concern about the change of this public protest into disturbance to include the entire Yemen.

Thousands of citizens in Taiz went in heated demonstrations in the streets outraged against the government and especially condemning the authority prime minister and his recent decisions relating to the price hikes.

Worth mentioning is that the Yemeni merchants represented by the Trade and Industry Chambers are negotiating with the government about the Sales Tax Law that is going to be executed at the beginning of July 2005.

The Trade Chambers demanded the cancellation or amendment of this law in order to decrease the burden; they say that it threatens their interests. Besides, this increase means greater burdens on the shoulder of the common people as well as the trader and the national economy accordingly.

The merchants criticize the strategies of implementing this law that require thousands of people in addition to collecting the taxes from each type of goods while the various stages of sales. Despite of the governmental tranquility, the strategies of implementation put the merchants before their fears.

The government confirmed that the sales taxes will be applied instead of the previous tax which was called production and consumption taxes though the merchants believe that the previous one was much more efficient in collecting the income and much more fit for the Yemeni circumstances.
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