New taxes for ships [Archives:2002/43/Business & Economy]

October 21 2002

A new law that will tax ships in Yemeni waters has been ratified by cabinet.
Ships will be taxed according to their size and the type of fishing they practice. The new law also prohibits any agreement with fishing companies unless the agreements will bring economic value to the country.
The cabinet stressed there will be penalties if the fishing environment is violated. The new law states the permitted distance for fishers in Red Sea and Arab Gulf is six nautical miles.
The new legislation comes just before the 3rd Arab Conference for fishing which is to be hoed in Sana’a October 28 to 30, to discuss a host of issues related to Arab countries’ including strategies and laws regarding fishing.
Yemen is suffering from fishing violations by fishers who pass through Yemeni waters. Domestic fishers are complaining of ships, which have contracts with the Yemeni authorities, that they do not fish in the area specified for them. Such conduct will affect the marine wealth in Yemen negatively due to inefficient marine supervision control.
The cabinet also has ratified increasing the contribution of the Yemeni to capital of the Islamic Bank for Development. Its subscription is to be 2,481 shares, which cost about 24 million Islamic dinar according to a report by the vice prime minister of the finance ministry, Alwai Assalami.
Regarding the Yemeni Bank for Construction Indebtedness on the Janateen company for food and dairies, the cabinet has ordered the Yemeni Economic Corporation (the guarantor of the Janateen company) to do the required legal procedures in order to occupy the company’s properties and assets to guarantee returning the money paid by subscribers and protect the rights of all partners.
Yemeni banks are suffering delay of payback by debtors, which has barred its activities and forced the Central bank to undertake a number of financial policies to help commercial banks overcome the debt problems and set new policies.