Government backs down from implementing sale tax law [Archives:2003/696/Local News]

December 22 2003

Mahyoub al-Kamali
Yemen Times

The Yemeni government has lately approved postponement of implementing the controversial sale tax law that angered businessmen and those working in trade as well as opposition circles because of its violation of terms of taxes imposed on consumers and production, let alone the high duties contained in the new law concerning sales.
The government has returned the law to the parliament that has agreed to change one of its articles that allows implementing the law at the beginning of the new year, indicating that would give more opportunity for more discussion and studying the previous experiments that had been carried out with regard to sales process.
The government said the purpose of levying taxes on sales was to protect the consumer while the opposition considered it as doubling the volume of taxes on tradesmen and prices in general particularly on consumer goods, demanding the stop in implementing the law.
The draft law imposes progressive taxation on sales increasing by variant rates on taxes already stipulated in the law of income taxes.