In most countries, citizens and residents pay taxes to the state in exchange for basic services such as roads, railways, hospitals, schools, social and cultural services, and security. However, this is not the case in Eritrea, a small, isolated, low-income country located on the Red Sea coast. Instead of receiving benefits from their taxes, citizens of Eritrea are met with anguish. Roads are neglected, buildings are deteriorating, and limited resources are used to indoctrinate pupils with state propaganda. Water, electricity, and petrol are all scarce and rationed.
It is unclear how much tax the Eritrean state collects from its citizens, as the reclusive regime does not share its financial records. It is likely that the amount is not enough to fund the government’s extensive military excursions. The country’s closed and heavily sanctioned economy has been on the verge of collapse for decades, and citizens have little opportunity to generate taxable income. So how does President Isaias Afwerki pay for his regime’s regional military misadventures?
The answer is likely the 2 percent income tax his regime levies on Eritrean citizens settled abroad. This “diaspora tax” was imposed in the 1990s soon after Eritrea’s independence from Ethiopia. At the time, most Eritreans abroad welcomed this new levy as an opportunity to contribute to the rebuilding of their country. However, the parliament has not convened since 1997 and the tax has stayed in place, becoming one of the main sources of revenue for the regime.
Today, the diaspora tax is collected by Eritrean consular offices around the world. Understandably, the Eritrean diaspora is not eager to pay a legally dubious tax that provides no benefit to themselves or their loved ones back home. To ensure payment, Eritrean consulates demand proof of diaspora tax payment before providing even basic consular services. They also refuse to issue ID cards or any other legal documents until the tax is paid. Citizens who do not pay cannot sell their properties in Eritrea or go home to visit their relatives. People who have never paid the tax can also face demands for massive back payments whenever they need any services from the Eritrean government.
The Eritrean diaspora is increasingly speaking out against this unjust and illegal tax that is likely being used to further repress the Eritrean people and fund conflicts in the volatile Horn of Africa region. However, Eritrea’s diplomats deny that the tax is unjust or illegal and often compare it with the federal income tax the US requires its citizens to pay while living abroad. This comparison is flawed as Washington has negotiated double taxation treaties with various governments around the world and does not blackmail its citizens to pay a tax with little legal basis by withholding basic government services.
The only way to change the country’s fortunes is for the Eritrean diaspora to take a united stance against the regime’s efforts to force them into paying this unjust tax. They should encourage governments in their countries of residence to take action against the collection of this illegal tax within their borders. In November 2022, a group of parliamentarians in the United Kingdom called for an investigation into the Eritrean diaspora tax, voicing their concern that the levy has been used to fund Eritrea’s war effort in Tigray. Similar calls and investigations have been made in other European countries with significant Eritrean populations, such as the Netherlands. These efforts should be expanded to other countries and international pressure should be put on the Eritrean regime to end this practice.
By cutting off one of its main channels of revenue, the Eritrean diaspora can help pave the way for a new Eritrea that reflects the values of its citizens. This is their chance to stand up against President Afwerki’s crimes and injustices inflicted on Eritrean citizens. It is time for them to take action and make a difference in their home country.