Islamic State’s New Taxes and Fines Indicate Worsening Financial Situation, IHS Says
May 27 2016 - 5:36AM
Business Wire
Revenue from taxation has decreased by 23 percent; $18 a month
per household charge for electricity and water, but $100 fine and
lashings for possessing alcohol
In response to their worsening financial situation, the Islamic
State is continuing to increase, taxes and fines throughout its
territory and in some cases introducing new ones. New analysis
released today by IHS Inc. (NYSE: IHS), the leading global source
of critical information and insight, reveals new information on the
group’s centralized and pervasive taxation system.
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A snap shot of some of the taxes and
fines imposed by the Islamic State (Graphic: Business Wire)
“Taxation makes up about 50 percent of the Islamic State’s
monthly revenue sources and encompasses almost every aspect of the
population’s life,” said Ludovico Carlino, senior analyst at IHS.
“Taxes are imposed by a central government body and flexibility is
allowed for regional governors. But, revenue from taxation has
decreased by 23 percent due to the group’s failure to hold onto
territory.”
Between December 2015 and March 2016, the Islamic State lost
about 22 percent of its territory, according to IHS. “The
population controlled by the Islamic State declined from around
nine million to around six million people,” said Columb Strack,
senior analyst at IHS. There are fewer people and business
activities to tax; the same applies to properties and land to
confiscate.”
Increases in Taxation and Fines
“In the past six months, the Islamic State has introduced a
range of new taxes and fines as a means of generating additional
revenue from the population to compensate for the loss of oil
revenue and from its shrinking territory,” Carlino said. “Since
September, we have seen taxes rise across the caliphate.”
Taxes and fines can be broken down into five categories: Social
Behavior, Education, Agriculture, Policing and Provision of
Services. The graphic provided is a snap shot of examples of taxes
and fines IHS found during its study of the group.
Download a larger list of taxes and fines
imposed by the Islamic State
Trucks crossing check points must now pay between $600 and $700,
last summer the fee was $300. The Islamic State also requires
non-Sunni Muslims, former members of the security forces or former
civil servants working for the Iraqi or Syrian government living in
its territory to buy from it a ‘repentance’ certificate. Repentance
used to be paid on an annual basis, now it is charged monthly. This
is on top of the required payment of the jizyah, a tax historically
levied on non-Muslims permanently residing in Muslim lands under
Islamic law.
New fines introduced since December 2015 include: fines for not
trimming their beard, fines for leaving the house door open, fines
for repairing or installing satellite dishes.
“The most heavily enforced category is Social Behavior,” Carlino
said. “The Islamic State is very specific on dress codes,
identification cards and neither smoking nor drinking. In February
and March, we saw the Sharia police getting harsher and stricter
with the population, an indicator of their financial troubles
adding up.”
“We also noticed another very interesting trend,” Carlino said.
The Islamic State is accepting money in exchange for corporal
punishment. “The punishment for some fines is corporal punishment,
but, the Islamic State is accepting money instead. This is big
indicator of the group’s financial difficulties.”
About the IHS Conflict Monitor
The IHS Conflict Monitor records about 1,000 manually geocoded
indicator events for Iraq and Syria every week from social media
and other open sources, systematically rated for reliability. It is
a monthly deliverable, which includes analysis, data and maps. The
team provides regular updates on Islamic State revenue.
The IHS Conflict Monitor includes regular analysis of the data
providing unparalleled insight into the structure, operations,
strengths and vulnerabilities of the Islamic State. The dataset
reaches back to January 2014, delivering unique data insights into
the tactics, activity and capabilities of armed actors, as well as
mapping the progression of the conflict in unprecedented
detail.
About IHS Jane’s
(www.janes.com)
IHS Jane’s, part of IHS Inc. (NYSE: IHS), is the leading open
source information provider and conference organiser on defence,
international risk and national security to governments,
militaries, industries and academia around the globe. IHS is the
leading source of insight, analytics and expertise in critical
areas that shape today’s business landscape. IHS has been in
business since 1959 and became a publicly traded company on the New
York Stock Exchange in 2005. Headquartered in Englewood, Colorado,
USA, IHS is committed to sustainable, profitable growth and employs
nearly 9,000 people in 33 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and
product names may be trademarks of their respective owners. © 2016
IHS Inc. All rights reserved.
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IHS Inc.Amanda Russo, +44 781 460
3420amanda.russo@ihs.comorPress Team, +1
303-305-8021press@ihs.com
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