Sales Tax Bill under review [Archives:2002/30/Front Page]

Chairman of the Yemeni Associations of Industrialists (YAI) Mahfoudh Shammakh described the Sales Tax Bill that the government has issued as one that could easily cripple investment in the whole country. The new Sales Tax Bill is against all investment policies and of course will lead to inevitable consequences. All countries in the world do their best to reduce taxes and custom duties and above all facilities are offered to them, he said. He further added that commodities are heavily taxed and that the bill should be reconsidered.
In a statement issued by YAI, participants emphasized that the Sales Tax Bill and the Consumption and Production Tax Law are both entirely based on unpractical realities. Enacting such laws will harm the economic growth and will discourage investors from investing in the country, the statement added.
Meanwhile, members of Industry and Commerce Chamber have strongly reacted against the Sales Tax Bill which, according to them, constitutes a disaster not only on the commercial and industrial sector but also on all other sectors.
During their meeting held in Sanaa during 14-17 July at the headquarters of the Industry and Commerce Chamber, participants have expressed their clear resentment over the Sales Tax Bill.
As for the new developments, Abdulwahab Abu Lohoom, the Chairman of the Capital Secretariat Chamber made clear that the president had positively responded to this critical issue and as a result, he gave his orders to postpone the Sales Tax Bill for only one year.
But the government in this respect has been interested only in increasing revenues and doesnt show any interest in over-taxation, he said.
As for the legal procedure in case of amending or postponing the law, Mustafa al-Asbahi, a law professor at Sanaa University commentated on the issuance of the Sales Tax Bill by saying, Any law that has been issued in accordance with constitutional measures has to be respected. The president in this regard is not authorized to cancel or freeze the law. In case of amending any law, a proposal has to be presented to the parliament for discussion. He added.
In this respect, Yemen Times phoned Abdullah Ashawaiter, General Accounting Manager at the Tax Administration, who outlined three types of taxes including the Consumption and Production Tax, Income Tax, and Vehicle Tax.
In a letter dispatched to the president, participants at the Industry and Commerce Chamber meeting expressed their resentment of the Sales Tax Bill. According to their letter, the new bill will result in inevitable consequences summed up as follows:
1- The industrial and commercial activity will be easily crippled.
2- When overburdened, investors will not show any interest to invest their capitals in the country.
3- It will create dishonest practices.
4- It will lead to a slowdown of economic activity.
5- It will pave the way for smuggling operations.
6- May lead to declarations of bankruptcy.
Participants have concluded their letter by calling for at least a 10-year additional postponement of the law.


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