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ERBIL, Kurdistan Region – The Islamic State group (ISIS) earns $80 million a month from taxing people living under its rule, and from confiscating property, drug smuggling and oil sales, according to a new analysis released Monday by global think tank IHS.
It said that 50 percent of the militant group’s income comes from taxation and confiscation, and around 43 percent from oil, drug smuggling, selling electricity and receiving donations.
“Unlike al-Qaeda, the Islamic State has not been dependent on money from foreign donors, to avoid leaving it vulnerable to their influence,” said Columb Strack, senior analyst at IHC. “Our analysis indicates that the value of external donations to the Islamic State is minimal, compared with other revenue sources."
IHS said ISIS enjoys six main sources of revenues: production and smuggling of oil and gas; taxation on the profits of all commercial activities in areas under its control; confiscation of land and properties; trafficking of drugs and antiquities; criminal activities such as bank robbery and kidnap for ransom; and state-run businesses.
“One of the Islamic State’s main sources of income comes from taxation on economic activity and basic services, including electricity, mobile phone networks, internet access, retail, industry and agriculture, within territory it controls,” said Ludovico Carlino, senior analyst at HIS.
“They charge a 20 percent tax on all services.”Strack believes that the US-led coalition has degraded ISIS' refining capacity and ability to transport oil via tanker convoys."The US-led coalition has focused primarily on disrupting the Islamic State’s oil income, which makes up about 43 percent of overall revenue," he said.
According to early indications the group is struggling from lack of revenues, with reports of cuts to fighters’ salaries, price hikes on electricity and other basic services, and the introduction of new agricultural taxes, according to the HIS’ Conflict Monitor.
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