Gov’t proposal: if diesel draft approved, farmers exempt from taxes

National Yemen

Yemeni Parliment

By NY Staff

In a bid to persuade parliament to approve a diesel price hike draft, on Tuesday the National Unity Government put forward a proposal stating that if the draft were approved, farmers would exempt from paying taxes – this according to parliamentary sources.

The sources said that the draft would be debated and up for a vote in the coming days.

Earlier the year, the diesel bill was rejected by parliament under the pretext that it would take its toll on farmers, who account for the a majority segment in Yemeni society.

The production of Yemeni oil was brought to a halt last year when frequent sabotage attacks targeted oil pipelines, which forced the government to import oil from abroad which it could scarcely afford. As a result, the price for 20 liters of oil went up to YR 2500 YR, up from YR 1500 for the same amount.

However, the government could not raise the value of diesel because of actions by parliament. However, diesel has continued to be sold on the black market for more than what government has proposed, as it can be extremely difficult to obtain from official gas stations.

Currently, 20 liters of diesel is officially sold for only YR 1000. Meanwhile, the government is trying to raise its price to YR 2000.