Yemen : Houthis Impose Successive Tax Hikes on Imported Cement

Sana’a — The Houthi authorities have approved two consecutive increases in customs duties and sales taxes on imported ready-mix cement, a move expected to drive up construction costs and deepen economic pressures on citizens and the building sector.

According to a circular issued by the group’s tax and customs offices, the first hike takes effect on August 26, imposing a 20% customs duty and a 10% sales tax on bulk and packaged cement. 

A second phase, scheduled for October 1, will raise customs duties to 30% and sales tax to 15%, while adding a surcharge labeled “protection and support of local production” equal to 50% of the combined duties and taxes.

The Houthis justified the measures as part of efforts to “protect local producers” and claimed domestic cement output has reached self-sufficiency. 

The decision follows a previous increase in levies on cement bags from about 480 rials to 700 rials, which already sparked criticism over its impact on construction costs.

Economic expert Ali al-Tuwaiti warned that the new hikes will raise building expenses, reduce demand for construction materials, and negatively affect employment in a sector that supports thousands of workers. 

He stressed that protecting local industry should focus on lowering production costs and boosting competitiveness, rather than burdening consumers and private businesses.