Supreme Court to resolve sales tax issue [Archives:2007/1030/Local News]

March 5 2007

SANA'A, March 4 ) Secretary General of the capital's Commerce Chamber, Mohammed Kawkaban, assured that the trade sector rejects the sales tax law in its current form, and insisted that its application should be delayed until the required amendments are made.

Kawkaban also maintained that the sector will continue its appeal procedures against the illegitimacy of the sales tax. He further indicated that they are satisfied with the Supreme Court's proceeds and the government's readiness to plead for its law after three years of delay.

He further denied that the Commerce Chamber's Union has called for the shutting down of shops or demonstrating, and noted that the congregation of merchants in the court last Tuesday was not planned, and that they afterwards realized the consequences behind the law application.

For his part, Commerce Chamber member Mohammed Salah assured that businessmen are adhering to the Cabinet's resolution concerning the adjournment of the tax law application until the coming year.

The businessmen agreed earlier to pay four percent added tax in Yemen's outlets and to reconsider the law in a way that fits in with society's interests.

Further, the union decided to go on their trail and negotiate with the government, confirming that they would resign unless they reach a solution with the government or win the case.

The Supreme Court held a session chaired by Judge Essam Al-Samawi on Tuesday, Feb. 27, to look into the case raised by the commerce chambers with regard to the sales tax. Lawyer Abdulkarim Al-Ba'dani, representing the Ministry of Legal Affairs, and Lawyers Hassan Mujli and Mohammed Naji Alaw from the chambers, attended the session.

The court heard the pleas of the government and the comments of the defendant, and decided to give the government additional time to submit further appeals during the next session, due to be held on Tuesday, Mar. 6.

The government and opposition together have taken a poor course, together with the commercial side, and this has passively affected commercial activities, causing prices of consumer goods to rise, thus affecting people's incomes and giving rise to complaints among Yemen's poorer classes.