Posts Tagged ‘checkpoint tax’

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ISIS taxing each long-haul trucker $800

September 28, 2014

Taxes make up increasing share of ISIS’s wealth

Trucks passing through Islamic State of Iraq and Syria (ISIS) checkpoints on highways out of Iraq are being charged a tax of up to $800 per truck. Truckers are issued two tax stamps or receipts for their payments—one is shown at the next checkpoint as proof of payment, and the other is kept for the driver’s records. The taxes are in keeping with traditional Islamic tolls against merchants passing through the jurisdiction of an ‘ashir–a tax agent of an imam.

But ISIS hasn’t stopped there—they’re also collecting a tax on each bank withdrawal they authorize through ISIS-controlled banking committees in Mosul. If you’re an ordinary Mosul bank customer, you have to get permission from ISIS to withdraw your own money, and of course ISIS takes a cut along the way. ISIS probably justify their fees on the basis of reversing any “haram” interest that has accrued to depositors’ savings.

Thanks to Twitter user El Grillo for sending in both of the news items above.

The taxes suggest a deepening of ISIS’s territorial control, authority, expertise, and capacity to increase revenues domestically.  Forbes also reports that ISIS is taxing telecommunications networks and basic utilities.  Non-Muslims face the discriminatory jizya tax as well.

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Gulf charcoal purchases prop up al-Shabaab

July 7, 2014

Money Jihad has long reported on how al-Shabaab profits from Somalia’s charcoal smuggling business, particularly by charging a checkpoint tax authorized by Islamic law. A new report from the United Nations Environmental Programme and Interpol confirms that this activity is ongoing despite a UN ban against Somali charcoal exports, saying that “Al Shabaab retains about one third of the [charcoal] income, which alone constitutes about USD 38–56 million” annually.

A map in the report shows a key al-Shabaab tax checkpoint at Buulo Xaaji, main points of embarkation from Kismayo and Barawe, major delivery locations at Jizan (Saudi Arabia), Dubai and Sharjah (UAE), and Khasab (Oman), with additional deliveries in Egypt, Yemen, and Kuwait.

Somali charcoal exports

In addition to “normal” smuggling of charcoal from Somalia to the Gulf states, it is Money Jihad’s belief that rampant trade-based money laundering is occurring between al-Shabaab and these states in which wealthy Arabs are transferring funds to al-Shabaab through over-invoicing for charcoal purchased. In other words, terror financiers in the UAE and Saudi Arabia are intentionally overpaying for Somali charcoal as a means of funding al-Shabaab without simple detection. The Gulf states are doing this to pursue larger strategic interests in Africa.

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Road rage: Al-Shabaab taxes truckers $150 to $600 a month

May 5, 2014

Extortion by the Somali terrorist organization al-Shabaab against local corporations and merchants is commonplace.  That is part of the reason why it is so important that Western banks stick to their guns when they have moved to sever ties with Somali remittance companies.  It has become increasingly apparent that it is nearly impossible to do business in Somalia without enriching al-Shabaab.  The entire country needs to be completely fumigated by Kenyan and AMISOM forces.  Only after the al-Shabaab infestation has been exterminated can their business sector be rebuilt and foreign investment resume.

Thanks to El Grillo for sending in this from Horseed Media on Apr. 22

Somalia: Al Shabab increased tax on local Business

The group has already enforced the new tax in Galgaduud region (central of Somalia), residents say.

“…The local bus and lorry drivers have to pay $150 Us dollars a month, while the other drivers from other regions will pay $600 us dollars…” says one of the local residents who asked not to be named for security reasons. He added “… the local livestock traders are also forced to pay the tax…”

Al-Shabab has been driven out of major towns by a UN-mandated African Union force, but the group still controls many of the rural areas in south-central Somalia and regularly launch attacks that include bombs and guerrilla-style raids.

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Al Shabaab: “economic powerhouse”

August 16, 2011

“Al-Shabaab reportedly generates between $70 million and $100 million per year”

Al-Shabaab has become a top-tier terrorist organization from its extensive revenues.  Their wealth is largely based on Islamic taxes that al-Shabaab imposes in accordance with the Koran.  It is following the same broad-based sharia revenue model that launched the Taliban from being an obscure students’ movement into an multinational financial hegemon.  From CNN (h/t to Un:dhimmi via a RoP newslink) on Aug. 5:

Washington — The once ragtag Somalia-based al Qaeda affiliate group known as Al-Shabaab has grown into an economic powerhouse, raising tens of millions of dollars in cash every year from a variety of schemes involving extortion, illegal taxation and other “fees,” according to a United Nations report.

The United States believes the group is closely coordinating with al Qaeda groups in Yemen and may be plotting attacks in the region and abroad.

The terrorist group now “generates between $70 million and $100 million per year, from duties and fees levied at airports and seaports, taxes on goods and services, taxes in kind on domestic produce, ‘jihad contributions,’ checkpoints and various forms of extortion justified in terms of religious obligation,” according to the July 18 report from the U.N. Monitoring Group on Somalia and Eritrea.

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