Tag Archives: Recovery and Rehabilitation Tax

The Wrongful Characterization of 2% Eritrean ‘Diaspora Tax’ by Media in the Netherlands

Eritrea Diaspora tax and the Dutch media
Stunning Hypocrisy. There has been not a single case of intimidation, threat or harassment reported to the Dutch police in respect of the 2% Diaspora tax. Then, would it be too much to advise Dutch media outlets either to put up or shut up?

BY HAILE HABTEGABER

The first obligation of good journalism is to the truth based on verifiable facts. Of course, the journalist may be biased due to own personal believes. But he/she cannot be allowed to get away with being dishonest with the facts.

And to demonstrate this obligation, he/she should lay down the verifiable facts for the interlocking public to make its own informed decision about the truth in terms of the context, interpretation, comment, criticism and debate. I concede, to be interested and take part in good faith for the furtherance of the lives people is legitimate. Continue reading The Wrongful Characterization of 2% Eritrean ‘Diaspora Tax’ by Media in the Netherlands

Taxes: Talk of Double Standard and Stunning Hypocrisy

Eritrea is hounded, ostracized, and even sanctioned for collecting its relatively modest 2% expat tax while no one dares to offer even a peep of criticism when the U.S. imposed its monstrous 39.6% federal tax on expat Americans. Does the word hypocrisy ring a bell?

By MINA,

This story may unnerve you… It’s the story of how Eritrea, a small, mostly unheard-of country in East Africa, and the United States, do the same awful thing.

Nearly every country in the world bases its tax system on residency rather than citizenship. If you’re an Italian citizen, and you leave Italy to live and work in Dubai, you don’t have to pay taxes on the income you earn abroad to the Italian government.

But Eritrea levies a 2% flat tax on its citizens who live abroad. If you’re an Eritrean citizen, you have to pay taxes to the Eritrean government, no matter where you live and work.

The media has condemned this as “extortion” and a “repressive” measure by an “authoritarian” government.

The UN has even weighed in. In Resolution 2023, the UN Security Council condemned Eritrea for “using extortion, threats of violence, fraud and other illicit means to collect taxes outside of Eritrea from its nationals.” Continue reading Taxes: Talk of Double Standard and Stunning Hypocrisy

Swedish Parliament Rejects Ban on Eritrea Diaspora Tax

Swedish-Eritrean citizen holding a sign that reads “I pay 2% with joy and Pride”

By TesfaNews,

The unrelenting attempt by certain Swedish parliamentarians to criminalize the 2% Eritrea Recovery and Rehabilitation Tax Commonly known as the ‘Diaspora Tax’ has been rejected by the Swedish parliament, Riksdag, once and for all.

The controversy begins when the Justice committee, Justitieutskottet, voted two years ago on two motions tabled by Eritrean-Swed Parliamentarian Arhe Hamednaca (S) (motion 2012/13:Ju340) and by Fredrik Malm (FP) (motion 2013/14:Ju358) that proposes for a complete ban on taxation of Eritrean citizens resident in Sweden by Eritrea claiming that the practice amounted to extortion. They take the lopsided reports of the UN Monitoring Group at face value to back up their claims. Continue reading Swedish Parliament Rejects Ban on Eritrea Diaspora Tax

African Union’s Quest for Alternative Sources of Finance: Lessons from the Recovery and Rehabilitation Tax of Eritrea

To tap into contributions from African Diasporas might be the only viable, standalone alternative source of funding for AU

By Elias Begashaw,

The African Union has been struggling to find adequate finance to pay for its activities for as long as its existence. The annual contributions from the Member States only cover a fraction of its expenses. Up to 96% of the programme budget of the organs of the Union is hence covered by donations from external sources.

There is consensus that the existing model of financing is unpredictable and exposes the union to undue external interferences. Accordingly, the need to secure “adequate, reliable and predictable financing” has been on the agenda since the days of the OAU.

Over the years, a plethora of alternative sources of finance, ranging from levy on insurance premiums to tax on SMS, have been considered. Several meetings were held at different levels to identify the best proposals. Continue reading African Union’s Quest for Alternative Sources of Finance: Lessons from the Recovery and Rehabilitation Tax of Eritrea

Eritrea Compliments Canada over 2% Tax

As in any other taxation system, there are certain consequences, clearly stipulated by law, that are applicable in case of unjustified 2% tax evasions but not through extra-judicial means.

By Eritrean Foreign Ministry,

The Ministry of Foreign Affairs of the State of Eritrea presents its compliments to the Department of Foreign Affairs and Internal Trade of Canada (DFAITC) and has the honour to convey the following:-

In its communications of July 27, 2012, reference number GFA0022, the Department of Foreign Affairs and Internal Trade regrettably invokes the biased and politically-motivated allegations of the Somalia Eritrea Monitoring Group to express concern on a number of policies and normative practices of the Government of Eritrea.  Continue reading Eritrea Compliments Canada over 2% Tax