Syrian Minister Denies Claims Over 64 Million SYP Tax Exemption

Syrian Finance Minister Mohammed Yisr Barnieh said the total annual income exempt from tax reaches 64 million Syrian pounds, at the old nominal value, denying what he described as “inaccurate and partial” figures circulating in some media outlets and online platforms about tax exemptions.

In remarks to the state news agency SANA, Barnieh said he had followed reports claiming that anyone earning less than 5 million Syrian pounds is exempt from tax. He stressed that this information is “incorrect and does not reflect the formula that was explained,” and called for accuracy and reliance on full official wording in issues tied to people’s livelihoods.

Details of Tax-Exempt Income

The finance minister said the current proposal would exempt every citizen or employee whose annual income is below 50 million Syrian pounds from tax. An additional 6 million Syrian pounds would be added as a family allowance, along with 8 million Syrian pounds as a cost-of-living allowance, covering expenses such as rent and medical care, bringing the total tax-exempt income to 64 million Syrian pounds a year.

Barnieh said the measure would provide “major support for low-income earners,” noting that this group would be fully exempt from taxes, alongside plans to launch social protection programs targeting it as part of efforts to ease economic pressures.

He added that most state workers and employees fall within this exempt category, reflecting a policy direction aimed at reducing the tax burden on low-income earners amid difficult living conditions.

Tax Cuts and Better Compliance

The minister said the government has lowered taxes compared with previous levels, adding that Syria’s tax system has become “among the lowest in the region and the world,” despite the need to raise resources to finance infrastructure projects and basic services.

He said tax reform is based on two main pillars. The first is achieving social justice by supporting low-income earners, and the second is promoting economic development by backing business and industry, in a way that helps stimulate growth and create jobs.

In that context, he said taxes on corporate profits had been cut from 28% to less than 15%, in addition to incentives for the industrial sector, while some sectors, such as agriculture, would face a zero tax rate.

He said the current approach is based on lowering taxes in exchange for improving tax compliance, while counting on cooperation from the business sector. He added that the next phase would include measures to reward those who comply and hold tax evaders accountable.

Exemptions for Affected Sectors

Barnieh said owners of damaged industrial, tourism, and commercial facilities would receive tax exemptions, with the aim of supporting the reopening of their businesses and encouraging economic activity in affected areas.

He also said the government is working to replace the consumption spending fee with a simpler and clearer sales tax, noting that basic goods such as food and medicine are fully exempt from tax, along with about 9,300 other goods and services.

Expanding the Tax Base

At the same time, the minister acknowledged that some high-income groups currently do not pay taxes, saying that this situation “will not continue” and that those groups should share the tax burden fairly.

He said the ministry would work to encourage tax-compliant individuals through “gold list” advantages, while taking action against evaders, as part of efforts to strengthen tax justice and increase public revenues.

He also stressed that anti-corruption efforts within state institutions would continue, saying corruption places an additional burden on citizens and leads to waste of state resources.

Gradual Rollout of Reform

The finance minister said implementation of the new tax system would be gradual, with part of it to begin this year and the rest to be completed next year, to ensure an orderly transition and reduce confusion or unjustified burdens.

He called for accuracy in reporting information related to tax reforms, warning that inaccurate circulation of such information could create confusion that affects public opinion.

A Statement That Caused Confusion

In an interview with Asharq on the sidelines of the IMF and World Bank meetings in Washington, Barnieh said the government is moving toward new tax reforms without raising current rates, while focusing on improving collection mechanisms and expanding the tax base.

He said the new tax system would preserve broad exemptions for basic goods, in addition to exempting low-income earners, in an effort to balance higher public revenues with preserving citizens’ purchasing power. He added that the ratio of tax revenues to gross domestic product in Syria remains among the lowest in the region, pushing the government to look for ways to increase it without negatively affecting economic activity.

Some social media platforms circulated those remarks while adding claims that the minimum taxable income threshold was 5 million Syrian pounds, which the minister denied in his new statement. Enab Baladi said it reviewed the remarks attributed to him and found them inaccurate.

Committee for Tax Reform

On June 6, the Finance Ministry issued a decision to form a tax reform committee headed by the minister and including representatives from the public and private sectors, to review the current tax system and propose broad amendments.

The committee includes representatives from the ministries of economy and industry, the General Commission for Taxes and Fees, as well as academics, experts, and representatives from the chambers of commerce and industry in Damascus and Aleppo. According to the decision, the committee may seek help from local and international experts to prepare an integrated vision for tax policy, in a step aimed at addressing the accumulated challenges in this file.

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