CTI intensifies campaign against sales tax law [Archives:2005/854/Local News]
SANA'A- The Chamber of Trade and Industry (CTI) intensified its opposing campaign against the sales tax law the government is intending to pass by the beginning of July.
Dr. Hassan Mujalli, lawyer of the CTI called Yemeni businessmen to refrain from paying tax on sales and said if businessmen responded to demands of the government, this will weaken the lawsuit sued against the legitimacy of the sales tax.
For his part Mahfoudh Shammakh President of the capital's CTI said in a press conference: “the trader's abiding by the law will weaken our position and we prefer to leave the choice for the trader.”
The CTI described the sales tax law as a comprehensive economic catastrophe.
13 trade and industry chambers and associations sent a letter to the President of the Republic expressing their sorrow as they can not meet the President to explain their position of the sales tax law.
They said all their attempts have gone in no avail.
The CTI sent a letter to the Parliament Speaker and the MPs appealing them to halt executing all the government demands with respect to reforms on the sales tax law.
Jamal al-Muttarrib, a member at the capital's CTI commented the suggested amendments of the law are worse than the law itself, which was appealed as unconstitutional.
Lawyer of the CTI Dr. Hassan Mujalli accused the government in a press conference held last Tuesday of practicing tyranny and oppression against traders.
He added the tax authority workers are allowed a total power to pass into the housing, industrial and trade institutions under the pretext of search of tax evaders. In addition, the Tax Authority demanded the prosecution to not allow traders to travel abroad unless they have certificates stating the tax is paid.
Dr. Mujalli noted: “I received a message of threat through the Internet since I commented on a case file and my persistence means incitement of chaos.”
The CTI filed a legal action against the President of the Republic, Prime Minister, Parliament Speaker and the Ministry of Finance and the Tax Authority, including appeals against the sales tax law.
The constitutional court is still continuing its sittings to look into the case.
It is worth noting the sales tax law imposes a 10% tax on businessmen whose annual sales reached the tune of YR50 million in commodities and YR40 million in services.
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