A recent economic study has shown that widespread corruption in Yemen has caused the government to lose a large share of its revenues. “The loss can mostly be attributed to exemptions, tax and customs evasion, monopolies, and the falsification of data on goods,” stated the study.
According to the study, the loss has resulted in a decline in state revenues and has consequently increased not only the state’s inability to function, but both internal and external debt.
Economic experts have said that tax revenues comprise 20% of the state’s general revenues and that many businessmen do not pay their taxes.
The National Reconciliation Government has been working to increase its general revenues through the improvement of non-petroleum revenue collection mechanisms. The government also plans on working to improve the performance of non-petroleum sectors, and especially those related to fishery and tourism.