New investment law and income-tax law to ensure privileges for local, foreign investors

The investment motives under the new law will present more privileges to stimulate the private sector to contribute to investment development in Yemen.

The Cabinet discussed the drafts of new investment and income-tax laws and referred them to the committee presided over by the Minister of Legal Affairs for further revision, in accordance with their notes, in their weekly meeting held on Tuesday chaired by  Prime Minister Ali Mujawar. After revision by the committee, the laws will be ready for final approval from the Parliament.

The two drafts were presented by a Ministerial Committee, headed by the Minister of Planning and International Cooperation Abdul-Karim al-Arhabi.

The Deputy Prime Minster and  al-Arhabi confirmed the government's desire to strengthen its partnership with the domestic private sector in a workshop discussing the final draft of the new investment law.

Al-Arhabi indicated that the reforms adopted by the government are intended to upgrade legislation to take advantage of Yemen’s investment potential.

He indicated that transferring privileges from the new investment law to the income tax law would encourage the local and foreign private sectors to invest in Yemen. He noted that the government is taking into consideration all notes from the national private sector concerning the new investment law.

Customs and tax exemptions exist in the current law, but it is proposed that they will be moved to the customs and tax laws, said Dr. Taha al-Fusiel, the Advisor of the Ministry of Trade and Industry and the Head of the Business Environment Improvement Unit. He demonstrated that the new tax law included decreasing income tax from 35 percent to 25 percent for companies, and 15 percent for investment projects, providing new incentives regarding investment costs and labor.

àWHAT IS THE GIA?? The GIA's Board of Directors will consist of members from the private sector and from the governmental sector, al-Fusiel said. The role of the GIA will be changed to promoting authority and supervising single window systems.

He confirmed that the new investment law will work to amend the structure of the GIA's Board of Directors. He pointed out that the investment motives in the new law will present more privileges to stimulate the private sector to contribute to investment development in Yemen.

He affirmed that the new exemptions will be changed according to productivity, so as to contribute to motivating investment projects to create new work opportunities.

The investment law draft includes 33 articles while the income-tax law draft includes 169 articles to ensure the provision of several advantages for investment.

In related news, the Cabinet approved a national strategy draft for solid wastes.

The strategy was revised by a ministerial and security committee led by Deputy Prime Minister for Security and Defense Affairs Rashad al-Alimi. It included a group of programs, policies, and measures in administrative, financial, and technical areas as well as the major roles of the Cleanliness Funds in the Sana'a and other governorates in its execution.

The strategy aims to develop hygienic and environmental conditions by promoting the competency of solid waste management and spreading its services throughout the country.

Meanwhile, the strategy will pinpoint the priorities and responsibilities of its administration and will work on developing the comprehensive sector method to direct donors' efforts and participation in this regard.

It will improve measures of preparing budgets and finance, as well as devoting current resources to manage waste, taking into consideration the effective role of society in this process.

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