According to a new report, ISIS finance has been badly hit by revenue losses of up to 30% after the terror group recently lost most of its territory to a barrage of air strikes from Anti-ISIS coalition forces that has badly weakened the militants. ISIS income fell from around £56m ($80) each month in March 2015 to £40m ($54) last month according to a report from consultancy IHS.
Also, the number of people living in Isis held territory has fallen from around nine million at the start of 2015 to fewer than six million, reducing the militants’ tax income. Col Steve Warren, spokesman of the international coalition fighting Isil said at the weekend that strikes had killed up to 25,000 fighters, meaning ISIS manpower has been significantly reduced. Around half the group’s revenues come from taxation and confiscation, and 43 per cent from selling and smuggling oil from captured wells, the reports estimates. Both sources have been hit.
“The Islamic State has lost about 22 percent of its territory in the past 15 months,” said Columb Strack, senior analyst at IHS. “Its population has declined from around nine million to around six million. There are fewer people and business activities to tax; the same applies to properties and land to confiscate.” The militants have introduced new levies to try and increase their income.
Taxes have been introduced for lorry drivers, satellite dishes have been installed and exit fees are now a must for anyone trying to leave an ISIS held city. Ludovico Carlino, senior analyst of IHS, the firm responsible for the report said: “Our research has found that the Islamic State is increasing taxes on basic services and coming up with new ways to get money from the population. “You can be fined for driving on the wrong side of the road and for not being able to answer questions correctly on the Koran.”
Source: Telegraph UK/ IHS