Sana'a Faces Potential Bottled Water Crisis as Houthi Tax Dispute Sparks Industry Strike

Saturday 6 Jul 2024 |3 months ago
A Houthi leader inside the Shamlan water factory - archive

Barran Press

A potential bottled water crisis looms over the Yemeni capital as local sources report that mineral water factories have entered a full-fledged strike, protesting a new tax imposed by the Houthi authorities.

The strike, which began earlier this week, is a direct response to the Houthi-controlled government's decision to levy a new tax of one Yemeni rial per bottle of mineral water, under the guise of "supporting the teacher's fund."

Sources told "Barran Press" that the Houthi authorities in Sana'a imposed the tax in recent days, sparking outrage among mineral water factory owners. Many factories have reportedly shut down production lines in protest, deeming the tax "illegal."

Following the factories' refusal to pay the tax, the Houthis closed down "Shmalan," "Huda," and "Sana'a" mineral water factories, removing dozens of workers. The Houthis justified their actions through their media outlets, claiming the closures were due to "excessive and unjustified price increases" for mineral water.

Local sources warn that Sana'a's retail outlets could face a shortage of bottled water in the coming days if the factory strike continues. Activists in the capital have also expressed concern over a potential water crisis, noting that existing supplies in the market are nearing depletion.

Earlier, the "Association of Mineral Water, Juice, and Soft Drink Factories" denounced what they described as "arbitrary measures" imposed on factories in Houthi-controlled areas for over a month, aimed at levying new taxes under the banner of "supporting the teacher's fund."

In a statement seen by "Barran Press," the association accused Yahya al-Houthi, the Minister of Education in the unrecognized Sana'a government and brother of the group's leader, of "exploiting his position to seize all funds forcibly collected under the guise of supporting teachers and continuing education."

The association further pointed out that the Houthi-controlled tax and customs authorities have suspended tax numbers and confiscated trucks at border crossings carrying raw materials essential for factory operations, without any legal justification.

The association attributed these "arbitrary measures" to the factories' failure to pay "exorbitant sums imposed under various names, an increase of twenty times the rate of fees stipulated by law."

The association expressed its "categorical rejection of these decisions and arbitrary practices in their entirety," warning of the catastrophic consequences that would severely damage national industries and the national economy as a whole. They further cautioned that the continuation of these practices would lead to a decline in investments and the flight of capital abroad.

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